Investa Office Fund Receives A$4.11 Takeover Offer From Dexus Property Group

Investa Is of High Quality, but Soft Tenant Demand and Increasing New Supply Pose Risks.

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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<p>On the 7 December 2015,&nbsp;Investa Office Fund (ASX:IOF) entered into a Scheme of&nbsp;Arrangement&nbsp;with DEXUS Property Group (ASX:DXS) (DEXUS) pursuant to which DEXUS would acquire all of the outstanding units in IOF.</p><ul><li>The offer is a mixed of scip and cash;&nbsp;0.424 DEXUS securities and AUD 0.8229 in cash for each IOF unit.</li><li>The implied offer of AUD 4.11 comes at a 7.31% premium to IOF's last close (4 December 2015)</li><li>IOF unitholders will be entitled to receive the full distribution for the 6 months ending 31 December 2015, which is expected to be 9.8 cents per IOF.&nbsp;</li><li>Deal Value ~ USD 1.84bn</li><li>No Shop no talk for 2 weeks.</li></ul><p>In this insight, we take a look at the transaction, valuation and the immediate trade worth setting up.</p>

On the 7 December 2015,&nbsp;Investa Office Fund (ASX:IOF) entered into a Scheme of&nbsp;Arrangement&nbsp;with DEXUS Property Group (ASX:DXS) (DEXUS) pursuant to which DEXUS would acquire all of the outstanding units in IOF.The offer is a mixed of scip and cash;&nbsp;0.424 DEXUS securities and AUD 0.8229 in cash for each IOF unit.The implied offer of AUD 4.11 comes at a 7.31% premium to IOF's last close (4 December 2015)IOF unitholders will be entitled to receive the full distribution for the 6 months ending 31 December 2015, which is expected to be 9.8 cents per IOF.&nbsp;Deal Value ~ USD 1.84bnNo Shop no talk for 2 weeks.In this insight, we take a look at the transaction, valuation and the immediate trade worth setting up.

Investa Office Fund

Over Excitement? We See a Safe Bet