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US property giant and private equity company Blackstone has lobbed a $3.1 billion cash bid for Investa Office Fund (ASX: IOF), sending its shares up by more than 10 per cent.
IOF, which controls some of Australia's most high-profile office towers, says it intends to recommend the takeover to its shareholders.
The company says Blackstone has offered $5.25 per share which is a 13 per cent premium to Friday's closing price of $4.55 and a significant improvement on the initial unsolicited confidential proposal of $5.05 per share on 5 April.
The proposal is worth $5.15 once Investa's expected second-half distribution is taken into account.
The latest offer of $5.25 was made on 4 May and Blackstone has since been conducting due diligence which is expected to be completed in four weeks time.
Blackstone has been chasing IOF for two years and renewed its takeover attempt after Cromwell Property Group's interest in the company faded and ultimately ended.
IOF has been the subject of the takeover interest as it holds a portfolio of nearly $4 billion comprising around 20 investment properties mostly in the Sydney and Melbourne CBDs.
Its two premium properties are the Deutsche Bank Place on the corner of Phillip and Hunter Streets in Sydney the nearby 388 George Street.
At around 1.30pm, IOF shares were trading at $5.10.
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Business News Australia
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