EUR 850.00 For Business Accounts Only

Morningstar | Investa Takeover Round-About Slows With Oxford Having the Upper Hand; FVE Increased to AUD 5.55

The anticipated takeover of Investa Office Fund, or IOF, by Blackstone looks an unlikely proposition as late bidder Oxford Properties Group appears to have the upper hand. Oxford's all cash nonbinding and conditional cash offer of AUD 5.60 per Investa unit made on Sept. 13, 2018 (less any distributions subsequently declared) has trumped Blackstone Group's previously improved non conditional proposal of AUD 5.52 cash per Investa Unit made on Sept. 10, 2018. Oxford is well-placed as it holds a sizable blocking stake, having already secured 19.99% of Investa's issued units.

The Oxford proposal has also taken a further step forward as Investa Funds Management Limited, or IFML, the responsible entity of IOF has entered into a confidentiality deed granting Oxford due diligence access in relation to IOF. The due diligence period runs for four weeks and during this period Oxford has agreed to standstill provisions whereby it agreed to not acquire further IOF securities.

We think it likely the takeover of IOF will occur in the range AUD 5.52 and AUD 5.60, representing Blackstone's offer at the lower end and Oxford's conditional offer at the top end respectively. Accordingly, we raise our fair value estimate to AUD 5.55 being the mid-point of the two offers.