Primaris Retail REIT’s Board of Trustees has reviewed the December 10 hostile take-over bid from a consortium led by KingSett Capital (that includes Ontario Pension Board and RioCan REIT), and in consultation with its financial and legal advisors, has unanimously recommended unitholders reject the offer. The Board found the KingSett’s $4.4-billion bid to be significantly undervalued and not in the best interests of Primaris unitholders.
“This is a financially inadequate and opportunistic offer,” said William Biggar, Chair of the Independent Committee of Trustees, that was created to review the bid. “KingSett’s hostile offer price is below the most recent trading price of Primaris Units and the market price is clearly indicating that Primaris’ high quality assets, operating platform, and track record of growth are worth more than their offer. Unitholders should not tender their Units to this offer.”
The Board’s recommendation, as well as a detailed discussion of its reasons for rejecting the KingSett Offer, is contained in a Trustees’ Circular, a copy of which is available at www.sedar.com or www.primarisrealvalue.com.