- Blackstone Real Estate Income Trust Inc. will acquire Tricon Residential in a C$4.7 billion equity transaction
- Under Blackstone’s ownership, the Tricon team plans to complete its C$1.3 billion development pipeline of new single-family rental homes in the U.S. and C$3.3 billion of new apartments in Canada
- The transaction is under investigation by law firm Halper Sadeh LLC to determine if Tricon and its board violated federal securities laws and/or breached their fiduciary duties to shareholders
- Tricon Residential stock last traded at C$14.83 per share
Blackstone Real Estate Income Trust Inc. will acquire Tricon Residential (TSX:TCN) in a C$4.7 billion equity transaction.
Blackstone signed an agreement to acquire all outstanding common shares of Tricon for C$15.17 per share.
The Transaction price is said to represent a premium of 30 per cent to Tricon’s closing share price on the NYSE on Jan. 18.
Under Blackstone’s ownership, the Tricon team plans to complete its C$1.3 billion development pipeline of new single-family rental homes in the U.S. and C$3.3 billion of new apartments in Canada (together with its existing joint venture partners). The company also intends to improve the quality of existing single-family homes in the United States through another C$1.3 billion of planned capital projects over the next several years.
The transaction’s completion is still subject to various closing conditions, including the approval of at least two-thirds of the votes cast by shareholders present in person. A special committee retained Scotia Capital Inc. as independent valuator and financial advisor to provide financial advice and prepare a formal valuation of the common shares.
The transaction is under investigation by law firm Halper Sadeh LLC to determine whether the sale is fair to Tricon shareholders. The firm wants to see if Tricon and its board violated federal securities laws and/or breached their fiduciary duties to shareholders by failing to obtain the best possible consideration for shareholders, determine whether Blackstone is underpaying for Tricon and disclose all information necessary for shareholders to adequately assess and value the merger consideration.
Tricon Residential Inc. is an owner, operator and developer of a growing portfolio of approximately 38,000 single-family rental homes in the southwest U.S. and multi-family apartments in Toronto.
Tricon Residential stock last traded at C$14.83 per share and is trading 22.06 per cent higher over the past month, 33 per cent in the past year.
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