Go-Shop Period In Blackstone, PS Business Parks Deal Expires With No Competing Offers

The go-shop period set forth in the merger agreement between PS Business Parks and an affiliate of Blackstone Real Estate has expired, marking the end of a phase in which the former’s financial advisors actively solicited company acquisition proposals from 43 potentially interested third parties. 

None of those third parties, or any others, have made competing proposals following the execution of the merger agreement, PSB said in a statement.  At this point, no-shop provisions now limit the ability of PSB and its representatives to negotiate competing proposals with or provide non-public information to third parties, subject to exceptions outlined in the merger agreement.

Under the terms of the merger, Blackstone agreed to acquire all the outstanding shares of PSB’s common stock for $187.50 per share in an all-cash transaction valued at approximately $7.6 billion, including transaction expenses. The stock price came at a premium of approximately 15% to the volume weighted average share price over the 60 days prior to the initial announcement in April. Blackstone will acquire a 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located primarily in California, Miami, Texas and Northern Virginia in the deal, which is expected to close in the third quarter of 2022, subject to approval by PSB’s stockholders and other closing conditions.