H&R REIT Unitholders Reject $3.4 Billion Takeover Bid
H&R Real Estate Investment Trust unitholders voted down a $3.4-billion takeover bid from a consortium led by GO Residential Real Estate Investment Trust.
Unitholders of H&R Real Estate Investment Trust rejected a $3.4-billion takeover bid from a consortium led by GO Residential Real Estate Investment Trust. The proposed deal, which offered a combination of cash and units in GO, would have seen Blackstone Inc., Crestpoint Real Estate Investments Ltd., and the Public Sector Pension Investment Board acquire the industrial properties of H&R.
Institutional investors and proxy advisory services, including Institutional Shareholder Services, recommended against the offer. Critics cited conflicts of interest involving H&R founder and CEO Tom Hofstedter, specifically questioning the fairness of the sale process and whether disinterested unitholders were receiving fair value.
Following the failed vote, independent lead trustee Stephen Gross announced that the board will begin a refreshment process and initiate CEO succession planning. To provide immediate value to investors, H&R plans to pay retroactive monthly dividends and a special cash distribution of approximately $2.30 per unit by the end of the year.
