TORONTO (Reuters) - KEYreit KRE_u.TO, which owns small retail properties across Canada, on Friday rejected an unsolicited partial takeover bid from Huntingdon Capital Corp HNT.TO, saying the proposal was inadequate, coercive and highly opportunistic.
“The partial offer fails to provide unitholders with an appropriate control premium for the units purchased, and provides no premium for units not purchased,” said Donald Biback, who heads the property owner’s board of trustees.
Richmond, British Columbia-based Huntingdon, which already owns 5.4 percent of KEY’s issued and outstanding trust units, in late January made an offer to acquire about 6.6 million, or 45 percent of KEY’s units not already owned by it for C$7 in cash per unit.
Toronto-based KEY, which owns over 225 retail properties in nine provinces across Canada, in its statement on Friday urged its unitholders to reject the Huntingdon proposal.
KEY said its board of trustees and management, who own about 17 percent of KEY’s issued and outstanding units, have all said they will not tender to Huntingdon’s proposal.
Reporting by Euan Rocha; Editing by Chizu Nomiyama