(Alliance News) - Industrials REIT Ltd said on Monday that Blackstone Inc plans to make a possible offer to acquire the property group after "extensive negotiations".
The London-based real estate investment trust investing in UK multi-let industrial properties said the two had reached agreement on the key financial terms of a final proposal for a possible cash offer for Industrials REIT to be made by a new entity controlled by one or more of the investment funds advised by Blackstone or any of its affiliates.
Under the terms of the final offer, Industrials REIT would receive 168 pence per share in cash.
The offer represents a premium of 42% to the Industrials REIT closing price of 118.0p on Friday, and 41% to its one-month volume weighted average share price of 119.5p on Friday.
In London, shares in Industrials REIT surged 38% to 162.54p on Monday. They were jumped 37% to ZAR35.50 in Johannesburg.
Industrials REIT and Blackstone are targeting the announcement of a firm intention to make an offer by Friday next week.
In a statement on Monday, Industrials REIT said it had indicated to Blackstone that it intends to recommend the proposed offer to its shareholders.
Blackstone's firm intention to make an offer remains subject to the satisfaction or waiver of a limited number of customary pre-conditions, including completion of confirmatory due diligence, which Blackstone and Industrials REIT are working closely together to complete as soon as is practicable.
The final offer is not subject to a financing pre-condition, Industrials REIT said.
Industrials REIT warned that there can be no certainty that any firm offer will be made for it. Blackstone funds are required, by not later than May 1, to either announce a firm intention to make an offer for Industrials REIT or announce that Blackstone Funds do not intend to make an offer.
By Artwell Dlamini, Alliance News reporter
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