Some of Ires Reit’s largest shareholders have sold shares at a discount to the price proposed by Barings. They are locking in recent gains before a formal bid deadline. Reports say Boston-based FMR, Starwood Capital, and Janus Henderson have sold most of their shares since Ires announced on September 28 that it received a €726.9 million bid from Barings, a US-based alternative asset manager.
Key Details
FMR has cut its stake from 6.98% to 3.34%. It raised €22.5 million by selling 17.5 million shares at prices as high as €1.29. This selling price is nearly 22% higher than where Ires shares were trading before the bid announcement. However, it is still below Barings' proposed offer of €1.386 per share. Ires indicated it would likely recommend a deal if a formal offer is made by the November 9 deadline set by the Irish Takeover Panel.
Background
Starwood Capital has also reduced its stake from 2.92% to 0.91%, raising €13.7 million in the process. Janus Henderson has sold 6.32 million shares for about €8.21 million, cutting its stake by more than half to 1.05%. Keyridge has similarly lowered its stake to 3.21% from 5.81% since the bid news broke.
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The share sales could affect Ires' stock price as investors respond to the ongoing bid process. The real estate sector may see volatility as the deadline approaches, especially for Ires shares, which are currently trading below the proposed offer price.
Investors will watch for news about the formal bid from Barings, especially any announcements made before the November 9 deadline.
Based on reporting by: irishtimes.com