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Oxford outbid Blackstone for IOF


Oxford completed their due diligence on Investa this week and confirmed their binding bid for 100% of the Units at $5.60.

Blackstone relinquished their right to match the offer enabling the Board of IOF to declare the Oxford proposal as the superior offer. The Board has terminated the Blackstone scheme implementation agreement and has entered into a scheme implementation agreement with Oxford in relation to the Oxford Proposal which remains subject to the independent expert concluding that the Oxford Proposal is in the best interests of unitholders. The change in the Board's recommendation will give rise to an obligation to pay a break fee of approximately $32 million to Blackstone. A similar fee regime will now apply under the Oxford Proposal.

The cash consideration under the Oxford Proposal of $5.60 per unit values IOF at a market capitalisation of $3.35 billion, and represents a

  • 23.1% premium to IOF's ex-distribution price of $4.55 per IOF unit on 25 May 2018, being the last trading day prior to announcement of the Blackstone proposal;

  • 26.1% premium to the 1 month VWAP up to 25 May 2018 of $4.44 per IOF unit; and

  • 28.7% premium to the 3 month VWAP up to 25 May 2018 of $4.35 per IOF unit.

A new Explanatory Memorandum will be issued once he Independent Experts Report has been issued.

#Investa #Blackstone