Oxford Properties has put in a last minute AUD3.3bn (€2.05bn) bid for Investa Office Fund (IOF), two days before unitholders are due to vote on Blackstone’s AUD3.26bn bid.
The real estate arm of Canadian pension fund OMERS has made a cash offer of AUD$5.50 per security for all of the shares of the Australian real estate fund.
The bid comes at a time when investors are already poised to vote in favour of the Blackstone bid, which was improved by AUD120m in a sweetened offer a fortnight ago – up from AUD5.15 to AUD5.45 per security.
Prior to making a bid, Oxford Properties, the real estate arm of Canadian pension fund OMERS, last month entered into an arrangement with IOF’s single largest investor Investa Commercial Property Fund (ICPF) to buy half of its 19.99% stake in IOF, if the Blackstone bid was unsuccessful.
Blackstone has made its higher offer conditional on the support of ICPF, a condition that it has the right to match any new offer.
Investa Listed Funds Management Limited (ILFML), the responsible entity said that the cash offer is “unsolicited non-binding, indicative and conditional,” and urged unitholders take no action at this point.
ILFML said it is considering the Oxford proposal and will update unitholders in due course.
The ILFML directors continue to unanimously recommend the Blackstone proposal in the absence of a superior proposal.