Dexus's $2.1 Billion Offer for Investa Office Fund Rejected

Dexus Property Group’s A$2.7 billion ($2.1 billion) bid for Investa Office Fund was rejected at a Friday meeting of unit holders.

One of the resolutions put forward didn’t get enough support to proceed, the fund’s responsible entity said in a statement to the Australian stock exchange Friday. Just 61 percent of unit holder votes were cast in favor of a resolution that required a 75 percent majority, according to the statement.

While Dexus’s bid was recommended by its independent board of directors, manager Investa Office Management had asked unit holders to reject the offer. Dexus’s offer, which included cash, stock and a distribution, was valued at A$4.37 a unit, based on the bidder’s closing share price on Thursday.

A move this week by Cromwell Property Group to acquire a stake in IOF also complicated the transaction, and the deal was also the subject of a ruling from the Australian Takeovers Panel. Last week it ordered additional disclosures from the manager over a proxy form that it said was likely to mislead or confuse unit holders.

IOF shares rose 0.7 percent on Friday to A$4.10 as of 1 p.m. in Sydney, while Dexus was 0.5 percent lower at A$8.18.

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