A KingSett Capital-led consortium that includes Ontario Pension Board intends to make an all-cash offer to purchase all of the issued and outstanding trust units of Primaris Retail Real Estate Investment Trust at a price of USD26.00 in cash per unit.
The total transaction is valued at USD4.4bn.
The offer price represents a premium of approximately 12.8 per cent to the closing price of USD23.04 per unit on the TSX on 4 December and a premium of approximately 13.3 per cent to the volume weighted average trading price of USD22.95 per unit over the 20 trading days on the TSX up to and including 4 December.
The offer price, which is above the all-time highest historical trading price of Primaris units on the TSX prior to this announcement, represents a premium valuation that fully reflects the composition of Primaris’ property portfolio.
KingSett Capital managing partner Jon Love says: "This is a strong and compelling offer, providing unitholders with a premium price at a time of peak valuations in the sector. The all-cash offer provides Primaris’ unitholders with an attractive opportunity to obtain immediate liquidity in the face of economic uncertainty and volatile markets. We firmly believe that this offer will be very appealing to unitholders."
Ontario Pension Board chief executive officer Mark Fuller says: "This transaction provides significant and immediate value to Primaris’ unitholders and is fully aligned with our strategy to increase our exposure to private market investments, such as real estate, private equity, and infrastructure, by partnering with leading institutions."
