For the scheme to be approved, more than 50% of the number of unitholders representing 75% or more in value of the units present and voting at the scheme must vote in favour of the exercise. Cuscaden, holding 61.5% in Paragon REIT, will abstain from voting.
Cuscaden Peak Investments, the sponsor of Paragon REIT has proposed the privatisation and delisting of the REIT by way of a trust scheme of arrangement. The offer price comes up to 98 cents per unit in cash, representing 1.07 times price/adjusted NAV, and is at a 10.9% and 12.8% premium over the one-month and 12-month volume-weighted average prices.
In addition, the scheme consideration will not be reduced by the 2HFY2024 cash distributions of 2.33 cents per unit, declared during its results. Management said the indicative date for the dispatch of scheme document is set for March, with scheme meeting and EGM in April.
