Orange Capital checks out of InnVest after profitable two-year makeover

, International

With a higher quality portfolio, InnVest was in a position to be acquired — and a buyer arrived.

It’s probably as close to a classic private equity transaction as is possible: A group of investors finds an undervalued situation, gets board representation, makes some fundamental changes, gives the company a new mandate and waits for a buyer, prepared to pay a healthy premium, to come along. And then they sell.

That, in short form, is how events played out at InnVest REIT which announced Wednesday it had been sold to Hong Kong interests for $7.25 per unit — a 37 per cent premium to the 30-day volume-weighted average price.

Such an outcome was a long shot in early 2014 when New York based Orange Capital told the world it owned 10.33 per cent and wanted InnVest to call a unitholder meeting. Specifically, Orange wanted InnVest’s board to expand to nine from seven and Orange’s seven nominees appointed.

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