Loblaw Companies Limited supports Choice Properties REIT's acquisition of Canadian Real Estate Investment Trust

About this update from Choice Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\nLoblaw Companies Limited supports Choice Properties REIT's acquisition of Canadian Real Estate Investment Trust\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Feb. 15, 2018\n\n\n\nTORONTO, Feb. 15, 2018 /CNW/ - Loblaw Companies Limited (TSX:L, \"Loblaw\" or the \"Company\")  announced today that Choice Properties Real Estate Investment Trust (TSX:CHP.UN, \"Choice Properties\"), an entity controlled by Loblaw, has entered into an agreement pursuant to which Choice Properties will acquire all of Canadian Real Estate Investment Trust's (TSX:REF.UN, \"CREIT\") assets and assume all of its liabilities, including long-term debt and all residual liabilities. CREIT will then redeem all of its outstanding units for $22.50 in cash plus 2.4904 Choice Properties units per CREIT unit, on a fully prorated basis (the \"Transaction\"). Loblaw, Choice Properties' controlling unitholder, has entered into a voting agreement in support of the transaction. Together, Choice Properties and CREIT will form Canada's largest REIT with an enterprise value of approximately $16B. The resulting enterprise will have industry leading operating and development capabilities as well as an unparalleled diversified portfolio comprising 752 properties with 69 million square feet of GLA.\n\nTo facilitate Choice Properties' financing for the transaction, Loblaw has agreed to convert all of its outstanding Class C LP units of Choice Properties Limited Partnership with a face value of $925 million (\"Class C LP units\") into Class B LP units of Choice Properties Limited Partnership (\"Class B LP units\") on closing. The Class C LP units are convertible by their terms into Class B LP units commencing in 2027 and the conversion of the Class C LP units on closing of the Transaction will be effected in accordance with those terms. Each Class C LP unit will be valued at $10.00 and the Class B LP units issuable will be valued at the 20-day VWAP of Choice Properties units on the TSX at closing. Choice Properties plans to issue a maximum of approximately 70.9 million Class ...

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