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  • H&R Team With KingSett Capital For Primaris Assets 0 comments
    Feb 13, 2013 5:41 PM | about stocks: HRUFF

    On February 5th, two competing bidders for Canada's Primaris Retail Estate Investment Trust have teamed up with an offer to acquire the shopping center operator for C$2.75 billion ($2.76 billion) in cash and stock.

    H&R Real Estate Investment Trust commit to buy Primaris' operating platform and 25 retail locations, with a consortium led by KingSett Capital to buy 18 properties. Under the deal, RioCan, Canada's largest REIT, will buy two malls in the greater Toronto area for C$362 million.

    In return Primaris holders are entitled to either cash or H&R shares valued at about C$27.98 per Primaris share.

    The compromise bid follows a contentious battle for control of Primaris. KingSett made a hostile C$26 cash bid in December for the REIT, which was followed by a Jan. 16 friendly merger agreement between Primaris and H&R that was valued at about C$27.05 per share.

    In addition to the higher price, the revised agreement increases the amount of cash available to Primaris investors. The deal includes a C$100 million breakup fee payable to H&R and KingSett under few conditions, including any unsolicited rival bids that Primaris deems superior.

    H&R will still add valuable retail assets to its portfolio that will make the company the largest diversified REIT in Canada.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: REIT Stocks: HRUFF
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