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Westpac Office Trust (WOT) recommended shareholders accept Mirvac Group’s (MGR) offer to buy all the shares in WOT. Mirvac offered 0.597 of its own shares for every one WOT unit held or 0.597 Mirvac Instalment Receipts (IR) for every one WOT IR held, valued at 86c per WOT unit.

There is also a cash option of 86c per WOT unit up to an aggregate cash component of $200 million.

As at 1123 AEST, Westpac Office Trust shares were up 3c to 85c, while Mirvac shares were down 2c to $1.415.

Westpac Funds Management Limited (WFML), the responsible entity of WOT, said it has entered into a Scheme Implementation Agreement with Mirvac in relation to the offer.

“The Independent Directors of WFML unanimously recommend the Offer in the absence of a superior proposal and subject to an independent expert concluding that the Offer is fair and reasonable and in the best interests of WOT Investors,” Westpac Office Trust said in a statement.

The proposal is for the offer to be implemented by way of a trust scheme which would require WOT investor approval and which, if implemented, would result in WOT becoming a wholly owned sub-trust of Mirvac Property Trust.

Westpac Office Trust said shareholders would be invited to vote on the offer at a meeting expected to be held on or about 13 July 2010.

Mirvac said it believes the combination of WOT and Mirvac’s portfolios would create a stronger and more diversified property investment portfolio, benefiting both existing and new Mirvac shareholders.

”The proposed transaction is expected to deliver 3% earnings accretion to Mirvac Property Trust in the financial year ending 2011 and expands Mirvac’s ownership of Australian investment grade assets by an additional $1.1 billion,” the group said.

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