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GIC and Oak Street to acquire STORE Capital in $14bn deal

GIC, a global institutional investor in partnership with Oak Street, a Division of Blue Owl, one of the largest net lease investors, are to acquire STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, in an all-cash transaction valued at approximately $14 billion.

Under the terms of the definitive merger agreement, STORE Capital stockholders will receive $32.25 per share in cash, which represents a premium of 20.4% to STORE Capital’s closing stock price as of 14 September, 2022 and a premium of 17.8% to the 90-day volume weighted average stock price through that date.

The transaction, which has been unanimously approved by the STORE Capital Board of Directors, is expected to close in the first quarter of 2023, subject to approval by STORE Capital’s stockholders and the satisfaction of certain other customary closing conditions. The closing of the transaction is not subject to any financing conditions.

The definitive merger agreement includes a 30-day “go-shop” period that will expire on 15 October, 2022, which permits STORE Capital and its representatives to actively solicit and consider alternative acquisition proposals. 

Under the terms of the agreement, STORE Capital will declare and pay its third quarter cash dividend in the ordinary course. Thereafter, the Company has agreed to suspend payment of any further regular quarterly dividends through the closing.

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