The battle for control of the Investa Office Fund is finally over with Oxford Properties gaining the support from the majority of unitholders to its $3.4Bn takeover of the trust. Blackstone were early favourites for the fund following their proposal at $5.35 per security and a binding Scheme Implementation Agreement. Importantly for Blackstone the Investa Commercial Property Fund (ICPF) which was a related entity would have been excluded from voting. A deal however with Macquarie Group to acquire half of the investment management platform provided a way out for ICPF to vote and establishing for themselves a market for their securities. Two days prior to the scheduled IOF unitholder meeting to consider the revised Blackstone proposal, Oxford lodge their proposal at $5.50 per security. Blackstone had an opportunity to meet or better the proposal and agreed to pay $5.52 per security, which Oxford then countered at $5.60 cash per security. Oxford also advised IOF that it had agreed to increase its effective ownership in IOF to 19.99%. At that point, Blackstone pulled out of the deal, allowing Oxford to proceed without an alternative. The Investa Board support the Oxford bid which represented a: 23.1% premium to IOF’s ex-distribution price of $4.55 per IOF Unit on 25 May 2018, being last trading day prior to announcement of initial Blackstone offer; 26.1% premium to the 1 month VWAP of IOF units up to 25 May 2018; 2.2% premium to IOF’s Pro Forma NTA as at 30 June 2018; and 1.4% premium to the highest price offered by Blackstone for IOF units of $5.52 per unit Deal done ! #Investa
