Blackstone Inc. and two rivals seeking to acquire the industrial real estate investment trust (FIBER) Mexican TF Administratora Industrial increased their offers after surprise election results in Mexico caused the peso to plummet.
Blackstone Real Estate, together with its Mexican partner MRP Group, raised their cash acquisition offer by 1 peso per share to 39.50 pesos, while Prologis Property Mexico offered 0.62 treasury shares for each TF share, up from 0.58 previously. The offer is valued at around 43 pesos per share based on the last 90 days of trading, the company said.
Shares of Terrafina, as the REIT is known, rose as much as 5.5% on Tuesday before paring its gains to about 3%.
The increase in offers, which was announced in documents on Tuesday, follows Fibra Macquarie México’s decision, reported on Monday, to raise the exchange factor on its all-stock offer from 1.05 to 1.125.
At least six bidders have been circling Terrafina in a wave of bidding for a Mexican company amid a boom in the industrial real estate sector, as more companies look for space to export to the United States. The commotion around this nearshoring trend has caused a reactivation of share issues in the Mexican stock market.
The increase in offers comes after the unexpected landslide victory of the ruling party in Mexico’s legislative elections, which caused a collapse of around 8% of the peso and hit local stocks, giving Blackstone room to increase its offer in pesos. Fibra Prologis shares have lost more than 8% since the vote, while Fibra Macquarie shares are down 3%.
Alejandro Fuchs, an analyst at Itaú BBA, indicated in a note that the increase in offers was expected after stocks were affected by the elections. “In the end, the price for Terra improved a little“Fuchs wrote, adding that he believes Fibra Prologis has the best chance of winning shareholder support.
Last Friday, Terrafina reported that a merger offer by Fibra Uno Gestión, which proposed combining its industrial assets with Terrafina, did not garner enough support from shareholders at a meeting.
Fibra Prologis extended the deadline of its offer until July 2, while Blackstone’s offer is now valid until July 17.
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Source: Gestion
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