Blackstone REIT to Buy WPT Industrial for $3.1 Billion
August 9, 2021 | James Sprow | Blue Vault
Blackstone Real Estate Income Trust Inc. agreed to acquire all the outstanding units of Toronto-based WPT Industrial Real Estate Investment Trust in a series of transactions worth US$3.1 billion including the assumption of debt.
The unit holders will receive US$22.00 apiece in an all-cash deal, which represents a 17.1% premium to the closing price of the units on the TSX on August 6 and a 19.5% premium to a 30-day volume-weighted average unit price of WPT Industrial on the TSX for the period ending August 6.
The committee of independent members of the board of trustees of WPT Industrial unanimously recommended that unit holders vote in favor of the transaction.
The deal, which is structured as a statutory plan of arrangement, is expected to close in the fourth quarter, subject to customary conditions.
As part of the deal, WPT Industrial agreed to suspend the distributions for August, September, October and the first half of November.
Eastdil Secured is acting as financial adviser and Simpson Thacher & Bartlett LLP and Goodmans LLP are acting as legal counsel to Blackstone Real Estate.
Morgan Stanley & Co. LLC and Desjardins Capital Markets are serving as financial advisers and Blake Cassels & Graydon LLP and Vinson & Elkins LLP are acting as legal counsel to WPT Industrial.
Blair Franklin Capital Partners Inc. provided a fairness opinion regarding the deal to WPT’s special committee. Wildeboer Dellece is acting as independent legal counsel to the committee.
Source: S&P Global Market Intelligence
