Business · Companies · 9 hrs ago

H&R unitholders reject $3.4-billion GO takeover bid

H&R unitholders reject $3.4-billion GO takeover bid

H&R Real Estate Investment Trust unitholders rejected a $3.4-billion takeover bid from a consortium led by GO Residential REIT.

GO has gone to court in Ontario seeking a $102-million termination fee, turning a deal supported by H&R’s management and board into a dispute.

H&R says the vote does not trigger any termination payment, while GO alleges H&R’s CEO and board failed to support the deal; H&R declined to comment on the lawsuit.

The offer faced criticism over conflicts and whether unitholders would receive fair value, including because the CEO’s family company was to buy properties from H&R.

The takeover would have given GO H&R’s U.S. residential properties, which make up 66 per cent of H&R’s portfolio.

H&R plans board changes and CEO succession planning, and says it will pursue property sales to simplify the REIT.

It also intends to pay a special distribution of about $2.30 per unit before year-end and retroactively pay monthly dividends.

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What people are saying

Stephen GrossH&R independent lead trustee
a board refreshment process that will include CEO succession planning
via Globe and Mail
a simplified value-driven REIT
via Globe and Mail
Institutional Shareholders Services Inc.Proxy adviser
concerns over the sale process, conflicts, deal logic and whether disinterested unitholders are capturing fair value relative to insiders
via Globe and Mail