BWP Trust has entered a bid implementation deed with the manager of Newmark Property REIT (NPR) in relation to a merger proposal by way of an off-market takeover.

The proposal is for an all-scrip transaction, pursuant to which NPR securityholders will receive 0.4 BWP units for every 1.0 NPR security held.

Based on BWP’s closing price of AUD3.47 on 23 January 2024, the merger ratio represents an implied price of AUD1.39 per NPR security.

The merger price represents a 43.1% premium to NPR’s closing price of AUD0.97 on 23 January 2024.

BWP believes that the merger proposal is in the best interests of both BWP unitholders and NPR securityholders and provides an opportunity to combine BWP’s and NPR’s complementary portfolios of quality assets and similar tenant profiles, said BWP Trust.

BWP Trust was last done on the ASX at AUD3.40 while NPR was last done at AUD1.32.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.