Paragon REIT on Mar 27 issued a scheme document in relation to its proposed privatisation and delisting by Cuscaden Peak Investments, by way of a scheme of arrangement. The scheme document follows the earlier Feb 11 joint announcement on the proposed privatisation. 

According to the scheme document, the independent financial adviser (IFA) has considered the factors set out in the IFA letter and is of the opinion that the financial terms of the scheme are fair and reasonable.

To recap, the scheme consideration of 98 cents per unit represents a 7.1% premium to adjusted NAV which translates to a Price / Adjusted NAV multiple of 1.07x, which exceeds peer benchmarks and historical averages. The consideration also exceeds the highest ever traded price over the last two years.

The scheme document also shared that the Paragon independent directors are of the view that the scheme represents the most attractive and credible option available which, if it becomes effective, delivers immediate deal certainty, by allowing unitholders to fully monetise their investments in cash at an attractive scheme consideration.

The Paragon independent directors have recommended that unitholders vote in favour of the Paragon scheme resolution.

The deadline for lodgement of proxy form A (EGM) and proxy form B (scheme meeting) is on Apr 19 at 2.30pm and 3.00pm,
respectively, while the EGM and scheme meeting will be held on Apr 22 at 2.30pm and 3.00pm, respectively.