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AOF to proceed with takeover from Charter Hall and Abacus

The Australian Unity Office Fund (ASX: AOF) looks set to be acquired by CHAB Office Trust, following the release of a Scheme Implementation Agreement (SIA) to proceed with the takeover offer at $3.04 per unit. The release of the SIA follows a unanimous recommendation by the independent directors of the Responsible Entity to vote in favour of the offer, in the absence of a superior proposal and subject to an Independent Experts report.

CHAB Office Trust, a joint venture between Charter Hall Group (ASX: CHC) and Abacus Property Group (ASX: ABP) announced the takeover offer back in June, after acquiring a 19.9% stake in AOF.

The release of the SIA and the unanimous recommendation by the independent directors has set the scene for investors to vote on the takeover offer, with a meeting expected to be held in early November 2019. Unitholders are expected to receive a Notice of Meeting and Explanatory Memorandum in mid-October. If approved, the takeover via the Scheme is expected to be implement in late November, subject to legal and FIRB approvals.

AOF has been the subject of an unsuccessful takeover offer from Starwood in 2018, which was priced at $2.871 and ultimately rejected by the Board.

Reporting Season Week 4: Results released last week from Australian Unity Office Fund (ASX: AOF), GDI Property Group (ASX: GDI), and Cromwell Property Group (ASX: CMW).