Blackstone approved for Valad takeover

If the Australian Supreme Court also grants its approval to Blackstone, Valad could begin its delisting process from ASX later this month. According to a release on the vote, 95% of Valad's securities holders voted in favor of Blackstone's proposed takeover, which would see it pay A$1.80 a share.

According to The Australian, Valad's value peaked at more than A$3 billion in 2007, and had hit a trading high of A$42.92. Yet, by April, it was said to have had a market capitalization of only A$133 million following a string of unsuccessful investments amid the global financial crisis.

In all, Blackstone's acquisition price values the company at A$208 million, and it will additionally assume Valad's debt liabilities of A$598 million. Auditor KPMG determined that while the payment scheme "is not fair," the bid was "reasonable and is in the best interests of Valad security holders" given that it was the best offer on the table, the Sydney Morning Herald reported.

Valad managed approximately A$8 billion of real estate assets in seven regions as of December 2010, including 23 offices in 13 countries in Australasia and Europe. It specializes in commercial and industrial property leasing, and works with 8,500 tenants on 900 properties.

In April, news first surfaced that Valad was in talks with Blackstone for a possible buyout estimated to be worth A$220 million. That followed Blackstone's acquisition of another Australian real estate asset, Centro Properties Group, for $9.4 billion. That buyout, which was classified as Blackstone's largest deal since the onset of the financial crisis, bought the PE major 588 real estate assets in the US.

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• Topics
• Australasia
• Real estate
• The Blackstone Group