KingSett Capital withdraws OSC application about Primaris unitholder rights plan | iNFOnews | Thompson-Okanagan's News Source
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KingSett Capital withdraws OSC application about Primaris unitholder rights plan

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TORONTO - An investment group led by KingSett Capital has dropped its attempt block as shareholder rights plan blocking its hostile takeover offer for Primaris Retail REIT (TSX:PMZ.UN).

The Ontario Securities Commission said Friday the consortium has withdrawn an application for a cease trade order related to the Primaris rights plan.

The move follows a decision by Primaris on Thursday to waive application of the plan in connection with the KingSett consortium takeover offer for the trust which owns 35 retail properties across Canada.

KingSett remains steadfast with its offer of $26 per unit in cash for the trust, however Primaris has signed a friendly deal to be bought by H&R REIT (TSX:HR.UN) for $28 per unit in cash and equity, with the cash component subject to a cap of $700 million.

The friendly deal comes with a controversial break fee valued at $106.6 million, which includes the option to acquire the Dufferin Mall and certain other Yonge Street properties in Toronto owned by Primaris, priced at an aggregate $36.6-million discount to the appraised values.

On Thursday, KingSett criticized the fee and said it prevented the group from increasing their Primaris bid.

Primaris units were trading at $27.26, down a penny on the Toronto Stock Exchange during mid-day trading Friday.

News from © The Canadian Press, 2013
The Canadian Press

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