The Board of Trustees of Summer REIT has unanimously recommends that unitholders accept ING Industrial Fund’s takeover offer.
The Board said the decision follows careful consideration of the offer and receiving the recommendation of the Special Committee which has also recommend unitholders accept the offer.
The Board said the cash consideration represents a premium of 17.9% over $25.45, the closing price on August 30, 2006, the day of the announcement of the offer, a premium of 18.7% over the 20-day volume weighted average trading price of $25.27 of the Units on the TSX for the period ending August 30, 2006 and represents a premium of 21.6% over $24.66, the 60-day volume weighted average trading price of the Units on the TSX for the period ending August 30, 2006.
The cash consideration also exceeds the highest trading price of the Units on the TSX for calendar years 2004 and 2005 and for the period in 2006 prior to the announcement of the Offer.
The Board said despite Summit’s past success in implementing its strategic plans and the Board’s belief that Summit could execute on its current strategic plan, the Board is of the view that the Offer provides a better alternative, and is more likely to provide value, on a risk-adjusted basis, to Unitholders than pursuing Summit’s strategic plans on an ongoing basis as a result of the risks and uncertainties associated with the successful implementation of such strategic plans.
Meanwhile, the Board said remains able to respond to unsolicited bona fide written acquisition proposals that are more favourable to Unitholders than the Offer and the Board may withdraw its recommendation of the Offer in certain circumstances, subject to the payment, in certain circumstances, of a $43 million termination fee.
By Adam Parsons
