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IOF in $3.14bn agreement with Blackstone

Simone Ziaziaris

Office manager Investa Office Fund has entered into a $3.14 billion agreement with US private equity group Blackstone to takeover the company.

Under the binding scheme agreement, Investa shareholders will be entitled to $5.25 per share, representing a premium of 2.4 per cent on Tuesday's closing price of $5.13.

Investa directors on Wednesday said they intend to vote in favour of the proposal - which is worth $5.15 once Investa's expected second-half distribution is taken into account - and unanimously recommended shareholders do the same.

Investa received an initial unsolicited confidential proposal of $5.05 per share on April 5, and then negotiated an improved offer.

The improved proposal was received on May 4, as Blackstone was conducting due diligence.

As of December 31, Investa held interests in 20 investment properties in the central business districts of major Australian cities, and a portfolio valued at $3.97 billion.

Investa chairman Richard Longes said the company was pleased to be entering into a binding agreement which will provide shareholders with a cash payment at a "significant premium" to its trading price prior to the announcement of the Blackstone proposal.

Shareholders will meet in August to vote on the scheme which, if approved, is expected to be implemented later in that month.