Invista Real Estate Agrees To Be Acquired By Palmer Capital

6/18/2012 5:52 AM ET

Shares of Invista Real Estate Investment Management Holdings Plc (INRE.L) increased about 17 percent on Monday morning, as it agreed to be acquired by Palmer Capital Investors (India) Ltd. The offer values the entire issued and to be issued share capital of Invista at 39.67 million pounds.

The boards of both the companies have agreed on the terms of a recommended offer, which will be implemented by way of a Court-sanctioned scheme of arrangement. The company expects the scheme to become effective in the second half of 2012.

Invista Group manages investments in commercial property assets in the UK, Europe and Asia and has assets under management of 749 million pounds as at December 31, 2011. Palmer Capital Group is a privately owned real estate investment manager and venture capital business.

As per the terms of the offer, the shareholders are entitled to receive 14.75 pence in cash for each ordinary share and preference shareholders will be eligible for 1.00 pound in cash for each preference share they agree to sell.

The consideration of 14.75 pence per share represents a premium of about 83.5 percent to the closing price of 8 pence per ordinary share on May 22, the last trading day before the date of the announcement of the Internos offer and a premium of nearly 19.2 percent over the closing price of 12.4 pence per ordinary share on June 15, the last trading day before the date of this announcement.

Invista added that the offer price in respect of each ordinary share is 18 percent higher than that offered by Internos and Invista directors unanimously withdraw their recommendation of the Internos offer.

Accordingly, the directors are recommending Invista shareholders to vote in favour of the scheme and the resolutions at the Court meetings and the general meeting in respect of the Palmer Capital offer.

Palmer Capital was incorporated on June 1, 2012, as a wholly-owned unit of Palmer Capital Investors for the purpose of making the offer.

Separately, Palmer Capital Partners Ltd., announced that it has received irrevocable undertakings from HBOS Insurance & Investment Group Ltd., and Wellcome Trust Ltd., which will total 210.83 million ordinary shares and 50 thousand preferred ordinary shares representing, in aggregate, about 78.9 percent of the Invista shares.

INRE.L is currently trading at 14.5 pence, up 2.12 pence or 17.17 percent, on a volume of 405,000 shares, against a three-month average volume of 88,149 shares on the LSE.

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by RTT Staff Writer

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