Valad Property Group, an Australian real estate investment group, has entered into an agreement to be sold off to the Blackstone Group for about $227 million, with Blackstone assuming Valad’s $655 million in debt, according to a New York Times article. Valad said in a statement on Friday that its directors had unanimously recommended the takeover scheme implementation deed in the absence of a superior proposal. "The Valad Board has been considering a range of strategic options to maximise securityholder value, including maintaining the status quo, a recapitalisation via an equity raising, a series of select asset sales and an orderly wind-up," Valad chairman Trevor Gerber said.
Blackstone will pay A$1.80 a share, a 56 percent premium to Valad's closing price on April 27 as reported by the San Francisco Chronicle. "In the absence of another bid, this is the lesser of the two evils," said Winston Sammut, managing director of Sydney- based Maxim Asset Management Ltd. "If there was a wind down of the company, it’s doubtful whether shareholders would be able to get that price."
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