Office manager Investa Office Fund is subject of a $3.14 billion cash bid from US private equity group Blackstone.
The ASX-listed firm says Blackstone has offered $5.25 per share, which, adjusted for any full-year distribution, represents a 13 per cent premium to Friday’s closing price of $4.55.
Investa says it received an initial unsolicited confidential proposal of $5.05 per share on April 5, and then negotiated an improved proposal.
It received the improved proposal on May 4, since when Blackstone has been conducting due diligence.
Blackstone has been granted an additional four weeks’ due diligence, and Investa on Monday said its directors intend to unanimously recommend the resulting scheme to shareholders.
The proposal is worth $5.15 once Investa’s expected second-half distribution is taken into account.
As of December 31, IOF held interests in 20 investment properties in the central business districts of major Australian cities, for a portfolio valued at $3.97 billion.
Investa’s first-half financial report released in February also showed $1.01 billion of debt.