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Oxford win battle for IOF

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 !