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IOF sets $3.14bn agreement with Blackstone

Simone Ziaziaris

Investa Listed Funds Management has entered a binding agreement for US private equity giant Blackstone to take over the ASX-listed Investa office Fund in a $3.14 billion deal.

Following Blackstone's offer in late May, Investa on Tuesday unveiled terms of a binding scheme agreement under which Investa shareholders receive $5.25 per unit.

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 unitholders do the same.

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

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 unitholders with a cash payment at a "significant premium" to its trading price prior to the announcement of the Blackstone proposal.

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

IOF units closed one cent higher at $5.14 on Tuesday.