A $5.2 billion acquisition of LXP Industrial Trust by Brookfield Asset Management and Canada Pension Plan Investment Board cleared its common-shareholder vote Oct. 26, with closing expected Nov. 2 if the parties meet the deal’s conditions.
The affirmative ballots represented about 82% of LXP’s outstanding common shares on the record date, and exceeded 99% of ballots cast at the special meeting, the trust said. The SEC-filed proxy states that 58,957,264 common shares were eligible to vote as of Sept. 18, with one vote attached to each share. Holders of LXP’s Series C preferred shares could not vote on the proposals.
The vote count is not yet certified. LXP said its inspector of election must certify the results before the final tally is included in the company’s Form 10-Q for the quarter ended Sept. 30.
Under the merger terms, common shareholders are to receive $61.20 in cash for each share if the deal closes. The transaction’s approximately $5.2 billion valuation includes net debt and preferred equity. LXP’s July announcement said the offer was 12.3% above its 30-day volume-weighted average price (VWAP) and 19.8% above its 90-day VWAP, measured through July 17.
The trust’s warehouse portfolio totals about 53 million square feet across 108 locations in U.S. Sunbelt and Midwest markets, according to LXP. Its proxy says a 40-day period to seek competing bids ended Aug. 28 without another proposal.
The transaction was announced July 20 after the parties signed a merger agreement the previous day. Canada Pension Plan Investment Board cited domestic manufacturing, changing supply chains and Sunbelt population growth as factors supporting demand for U.S. industrial properties.
LXP said common-share dividends are suspended until the deal closes or the agreement is terminated. Completion would exchange common shareholders’ listed equity for cash and end public trading in LXP shares. The company expects the transaction to close Nov. 2, subject to satisfaction or waiver of the agreement’s conditions.
