Investa Listed Funds Management will grant Canadian-owned Oxford Property Group four weeks due diligence on its $5.60 a unit offer for Investa Office Fund.
Oxford is in the box seat with a foot on 19.9% of Investa Office in two tranches announced last week. Oxford controls the votes of half the holding 9around 9.9%) and the holder, the unlisted ICPF fund controls the votes of the other half.
The four weeks of due diligence on the Fund’s finances and property holdings will allow Oxford to turn its proposed offer into a hard and fast deal.
Despite that and Oxford’s higher bid IOF’s directors are still recommending a competing offer from US fund manager Blackstone of $5.52 all cash a unit.
At the same time ASIC, the corporate regulator has written to Blackstone asking it to clarify a senior executive’s comments made on US television that it was out of contention.
Blackstone described its $5.52 a unit offer as being ‘final’ meaning it can’t be improved in the current bidding process.
Fairfax Media reported on September 6 (https://www.smh.com.au/business/companies/blackstone-lands-best-and-final-bid-for-3-6b-investa-office-20180906-p5023q.html)
Blackstone’s head of property Australia Chris Tynan, said this is the “best and final” offer in the absence of a superior offer.
But now Blackstone has issued a clarification that it remains in the $3.4 billion tussle and could even contemplate lifting its bid in the face of the $5.60 a unit from Oxford Properties Group.
ASIC asked Blackstone for clarification of remarks made by Tony James, executive vice-chairman of Blackstone, in an interview with CNBC on Monday (US time) when in the interview, Mr James referred to rival bidder Oxford’s agreement to buy out the near 20 per cent stake held in IOF by its unlisted sister fund, Investa Commercial Property Fund.
“So I think that gives them nearly a blocking position. So I think that leaves us out on this one,” Mr James said in the interview.
Now Blackstone’s head of real estate in Australia Chris Tynan (the same man as quoted by Fairfax on September 6) has responded to ASIC’s request for a clarification of those remarks in a letter to IOF’s chairman Richard Longes.
In the letter, filed with the ASX, Mr Tynan said that Blackstone is effectively still in the contest, noting that it retains a series of options in regard to its current offer.
“These comments do not in any way restrict Blackstone’s ability to exercise the options noted above, including increasing the proposed scheme consideration,” Mr Tynan wrote in respect of his vice-chairman’s comments.
“Mr James’ comments merely express concerns which Blackstone has in relation to the potential creation of an anti-competitive environment in relation to the auction of IOF,” he said in the letter.
