This article is from the Australian Property Journal archive
US giant Blackstone’s $3.1 billion bid for Investa Office Fund is facing defeat at the hands of shareholders after the unlisted Investa Commercial Property Fund, IOF’s largest shareholder, revealed it would vote against the takeover play.
ICPF holds a 19.95% stake in IOF, and 75% approval from shareholders is required at the August 29 vote for the takeover to go ahead.
It informed Investa yesterday that it would also sell off 9.99% of the IOF shares to property developer, investor and manager, Oxford, owned by the $100 billion Canadian pension fund OMERS, should the Blackstone bid be rejected.
“After careful consideration, Investa Wholesale Funds Management Limited and ICPF Holdings Limited (together ICPF) share the view that the current Blackstone Proposal does not adequately reflect the value of the IOF portfolio,” ICPF chairman, David Baffsky said.
ICPF had sought to avoid legal concerns over its eligibility to vote, offloading a 50% stake in IOF’s property manager to the property arm of Macquarie Capital last week.
Investa Listed Funds Management Limited, the responsible entity of IOF, reaffirmed its support for Blackstone’s proposal.
IOF unitholders would receive $5.25 cash per unit, which would become effectively $5.15 per unit once the IOF’s second-half distribution is taken into account. Fairfax Media has reported that Blackstone is weighing up increasing the size of its offer.
Australian Property Journal
