Alexis Nihon Real Estate Investment Trust
TSX : AN.UN

Alexis Nihon Real Estate Investment Trust

March 02, 2007 08:30 ET

Homburg Invest and Alexis Nihon REIT Mail Offer and Circulars

HALIFAX, NOVIA SCOTIA and MONTREAL, QUEBEC--(CCNMatthews - March 2, 2007) - Homburg Invest Inc. ("Homburg") (TSX:HII.A)(TSX:HII.B)(AEX:HII) and Alexis Nihon Real Estate Investment Trust ("Alexis Nihon") (TSX:AN.UN) announced today that the offer (the "Offer") made by Homburg Acquisition Inc., a wholly-owned subsidiary of Homburg, to purchase all of the outstanding units of Alexis Nihon at a price of $18.60 in cash per unit and the related take-over bid circular as well as the trustees' circular of Alexis Nihon have been mailed on March 1, 2007 to all holders of record of Alexis Nihon. Copies of the take-over bid circular and the trustees' circular of Alexis Nihon are available on SEDAR at www.sedar.com.

The trustees of Alexis Nihon unanimously determined that the Offer is fair to unitholders of Alexis Nihon and in the best interests of Alexis Nihon and its unitholders and unanimously recommend that Alexis Nihon unitholders accept the Offer and tender their units to the Offer.

In arriving at their recommendation, the trustees of Alexis Nihon considered a number of factors which are discussed in greater detail in the trustees' circular of Alexis Nihon, including the fairness opinion of CIBC World Markets Inc. dated February 19, 2007 that, as at that date and subject to the assumptions, limitations and qualifications contained therein, the consideration offered under the Offer was fair, from a financial point of view, to the unitholders of Alexis Nihon.

The Offer was made pursuant to the terms of a support agreement dated February 19, 2007 between Alexis Nihon and Homburg and will be open for acceptance until midnight (Montreal time) on April 5, 2007, unless extended or withdrawn by Homburg Acquisition Inc.

The Offer is for all outstanding units of Alexis Nihon, including the units issuable upon conversion of the Series A 6.20% convertible unsecured subordinated debentures of Alexis Nihon due June 30, 2014. Holders of debentures are encouraged to convert their debentures at a conversion price of $13.65 per Alexis Nihon unit and tender their units to the Offer.

BMO Capital Markets and Osler, Hoskin & Harcourt LLP are acting, respectively, as financial and legal advisor to Homburg. Fasken Martineau DuMoulin LLP is acting as legal counsel to Alexis Nihon.

Forward-looking Statements

This document may contain forward-looking statements relating to Alexis Nihon and Homburg. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond Alexis Nihon's and Homburg's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. In addition, these forward-looking statements relate to the date on which they are made. Alexis Nihon and Homburg disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Homburg

Homburg, with its head office in Halifax, Nova Scotia, owns and develops a diversified portfolio of quality real estate including office, retail, industrial and residential apartment and townhouse properties throughout Canada, the United States and Western Europe.

About Alexis Nihon

Alexis Nihon currently owns interests in 65 office, retail, and industrial properties, including a 426-unit multi-family residential property, located in the greater Montreal area and the National Capital Region. Alexis Nihon's portfolio has an aggregate of 9.1 million square feet of leasable area, of which 0.4 million square feet is co-owned.

Contact Information

  • Homburg Invest Inc.
    Richard Homburg
    Chairman and Chief Executive Officer
    (902) 468-3395
    or
    Alexis Nihon Real Estate Investment Trust
    Guy Charron, CA
    Executive Vice President and Chief Operating Officer
    (514) 931-2591
    or
    The Depositary - Computershare Investor Services Inc.
    Toll Free (within Canada and the U.S.): 1-800-564-6253
    International Calls: (514) 982-7888
    Email: corporateactions@computershare.com
    or
    Dealer Manager (Canada) - BMO Nesbitt Burns Inc.
    1 First Canadian Place, 5th Floor
    Toronto, Ontario M5X 1H3
    Toll Free (within Canada and the U.S.): 1-866-730-6162