Suryaa Now Business News Desk: Unit holders of the Canadian real estate investment trust H&R REIT have rejected a proposed $6.7 billion breakup and acquisition deal. The proposal failed to secure sufficient votes during a special meeting, resulting in the immediate cancellation of the agreement with a buyer consortium led by Blackstone and GO Residential REIT.
Under the terms of the agreement, H&R REIT is not required to pay a termination fee to the consortium. The proposed deal had involved dividing and selling the H&R REIT portfolio into various segments. Shareholders, including Millpond Capital, had opposed the plan, arguing that it did not provide adequate value to ordinary investors and would benefit entities linked to the CEO’s family. Proxy advisory firms had also recommended voting against the deal.
Following the cancellation, H&R REIT has announced plans to focus on its future strategy. The trust stated it will work toward long-term value for unit holders, including board restructuring and the announcement of a CEO succession plan. Additionally, the company intends to take steps toward reinstating suspended distributions.