Morningstar | Platform Deal with Macquarie Could Lift Voting Restrictions and Scupper Blackstone Takeover of IOF
Macquarie Real Estate's last minute purchase of a 50% interest in the Investa management platform (the platform transaction) makes it far less likely the Blackstone Group will gain the 75% of votes to effect its proposed takeover of Investa Office Fund. We continue to recommend IOF security holders vote in favour of the proposal, noting the latest events increases the likelihood of any takeover becoming a drawn-out affair given the relevant legislation is complex and the outcome could ultimately be decided by the courts. The board of Investa Listed Funds Management Limited, or ILFML, is seeking further detail in relation to the platform transaction and the impact this has on voting restrictions.Under the Australian Corporations Act, section 253E, ILFML as the responsible entity of Investa Office Fund and its associates are not entitled to vote their interests on the takeover proposal on Aug. 21. Prior to the platform transaction with Macquarie Real Estate, ILFML and its associate Investa Wholesale Funds Management Limited, or IWFML, were precluded from voting their collective 19.9% stake in Investa Office Fund. Following the platform transaction, it appears the section 253E restriction no longer applies and IWFML can now vote on the proposal.
IWFML, which has a 17.5% ownership interest in Investa Office Fund, has stated it has not yet decided on how it and its subsidiaries will vote on the resolutions on Aug. 21.
Investa Office is a real estate investment trust formed by the stapling of the units in two Australian registered schemes, Armstrong Jones Office Fund and Prime Credit Property Trust. The principal activity of Co. is to own investment grade office buildings, generating rental and other property income. These properties are either owned directly or indirectly through the ownership of interests in unlisted entities.
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