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Shares in Hibernia REIT PLC rose on Friday after agreeing a €1.08 billion takeover offer from Benedict Real Estate Bidco Ltd, a subsidiary of a real estate private funds owned by Brookfield Asset Management.
Shares in the Dublin-based real estate investment trust were 37% higher at 135.00 pence on Friday afternoon in London.
The company has a market capitalisation of €926.5 million.
Under the agreement, Brookfield will acquire Hibernia REIT for €1.63 per share in cash, comprising €1.60 per share, and a dividend of 3.4 cents.
Excluding the dividend, the offer price reflects a 36% premium to Hibernia's closing price of €1.18 on Thursday in Euronext Dublin, as well as a 3.0% premium company's EPRA net tangible assets per share of 158.7 cents at the end of December.
The acquisition is conditional on gaining at least 75% shareholder approval at both the scheme meeting and extraordinary general meeting, as well as being sanctioned by the High Court of Ireland.
Hibernia REIT expects the acquisition to be completed within the second quarter of 2022. So far, Brookfield has gained irrevocable acceptances from around 9.1 million shares in Hibernia, 1.4% of the company's issued share capital.
‘Despite significant progress against its strategic objectives and a track record of successfully recycling capital into value accretive opportunities, Hibernia REIT has traded at a persistent discount to its prevailing EPRA NTA per share. The Acquisition recognises the company's prospects and the quality of its portfolio of assets and delivers an acceleration of the value we expect to be created from completion of Hibernia REIT's major office development projects,’ said Chair Danny Kitchen.
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