This article is from the Australian Property Journal archive
INVESTA Office Fund has quashed rumours of a Mirvac led consortium making a rival bid and at the same time, Dexus is hoping to seal its deal with a special distribution of 7 cents per unit offer.
The offer price under the Dexus proposal combined with the 7 cents special distribution implies a 6.6% premium to IOF’s 31 December 2015 NTA. The latest sweetener increases Dexus’ takeover bid to $2.6 billion.
The special distribution will be paid if the Dexus proposal is accepted.
The IBC chairman Deborah Page said the special distribution was consented to by Dexus after re-assessing transaction costs associated with its proposal to be $19 million lower than expected.
“It appears unlikely that given the terms of the platform sale agreement, Dexus would make a facilitation payment to Investa Office Management or any other member of the Investa Commercial Property Fund group in relation to the loss of certain IOF fund management rights.
“This special distribution is in addition to the consideration being offered under the Dexus proposal and as such enhances what the IBC concluded to be a compelling proposal for IOF unitholders. The IBC continues to unanimously recommend that IOF unitholders vote in favour of the Dexus proposal in the absence of a superior proposal,” Page said.
Meanwhile Page quashed rumours that a Mirvac led consortium comprising Mirvac, China Investment Corporation and Blackstone were considering a bid.
“The IBC confirms that it has not received and is not aware of any competing proposal from a Mirvac led consortium or from any other party,” she added.
As a result of the latest announcement, the IOF unitholder meeting scheduled for 10:00am on Friday, 8 April 2016 will be adjourned, to give investors time to consider the updated offer.
Australian Property Journal
