Tricon Residential Inc. announced that a court in Ontario has approved a plan for Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust, Inc. to buy all of Tricon’s shares for $11.25 each in cash. This means that Blackstone will pay a total of $3.5 billion to take over Tricon.
However, this deal isn’t done yet. There are still some things that need to happen before it’s finalized, like getting approval from the government under the Investment Canada Act. They expect everything to be finished by the second quarter of this year. Once the deal is complete, Tricon’s shares will no longer be traded on the New York Stock Exchange or the Toronto Stock Exchange.
Key Points:
- Acquisition Approval: Tricon Residential Inc. received court approval for its acquisition by Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust, Inc.
- Transaction Details: Blackstone will acquire all outstanding common shares of Tricon for $11.25 per share in cash, amounting to a total equity transaction value of $3.5 billion.
- Completion Conditions: The transaction is subject to certain customary closing conditions, including regulatory approval under the Investment Canada Act.
- Expected Timeline: The completion of the transaction is anticipated in the second quarter of the year.
- Impact on Share Trading: Following the completion of the transaction, Tricon’s common shares will be delisted from both the New York Stock Exchange and the Toronto Stock Exchange.
The announcement clarifies the legal proceedings and provides insights into the expected timeline and impact on the company’s stock trading following the acquisition.
About Blackstone
Blackstone Inc. is an American alternative investment management company headquartered in New York City. Let me provide you with some key details about Blackstone:
- Founding and History:
- Blackstone was founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman with an initial seed capital of $400,000.
- The name “Blackstone” was derived from a cryptogram based on their names: “Schwarz” (German for “black”) and “Peter” (meaning “stone” or “rock” in Greek).
- Initially, Blackstone operated as a mergers and acquisitions advisory boutique.
- Notably, it advised on the 1987 merger of investment banks E. F. Hutton & Co. and Shearson Lehman Brothers.
- Over the years, Blackstone has expanded its focus beyond M&A to various investment strategies.
- Business Segments:
- Private Equity: Blackstone’s private equity business has been a major player in leveraged buyouts for the past three decades.
- Real Estate: The company actively acquires commercial real estate in this segment.
- Credit: Blackstone is involved in credit investments.
- Infrastructure: It participates in infrastructure projects.
- Hedge Funds: Blackstone manages hedge funds.
- Insurance: The company has interests in the insurance sector.
- Secondaries: Blackstone deals with secondary market transactions.
- Growth Equity: It invests in growth-stage companies.
- Financial Snapshot (as of June 2023):
- Total Assets Under Management (AUM): Approximately US$1 trillion, making it the largest alternative investment firm globally.
- Revenue: US$8.02 billion.
- Net Income: US$2.44 billion.
- Total Equity: US$6.82 billion.
- Number of Employees: 4,735.
- Leadership:
- Stephen Schwarzman: Chairman and CEO.
- Jonathan Gray: President and COO.
- Joseph Baratta: Head of Private Equity.
- David Blitzer: Global Head of Tactical Opportunities.
Blackstone’s prominence in alternative investments and its substantial global presence have solidified its position as a key player in the financial services industry.
About Tricon Residential Inc.
Tricon Residential Inc. is a rental housing company that is dedicated to providing an exceptional rental experience to every resident who makes one of their houses or apartments their home. Their belief is that quality rental housing can unlock life’s potential, and this drives their thinking and actions every day.
Here are some key points about Tricon Residential:
- Portfolio: Tricon owns, operates, and develops a portfolio of approximately 38,000 single-family rental homes in the U.S. Sun Belt region and multi-family apartments in Canada.
- Culture and Philosophy:
- Enriching Lives: Tricon’s commitment to enriching the lives of their employees, residents, and local communities underpins their culture and business philosophy.
- Empowering Team Members: They empower their team members to provide exceptional service to residents and positively impact the communities where they operate.
- Resident Experience: By providing an enhanced living experience, Tricon encourages longer rental periods, fosters a sense of ownership among residents, and encourages them to share their positive experiences with friends and family.
- Positive Returns: Their approach has proven to generate positive returns for investors and shareholders.
- Purpose: Tricon imagines a world where housing unlocks life’s potential. They strive to be North America’s premier rental housing company.
- Guiding Principles:
- Enrich Residents’ Lives: Tricon goes above and beyond to enrich the lives of their residents.
- Commit to Excellence: They inspire excellence in everything they do.
- Embrace Innovation: Tricon embraces problem-solving and innovation.
- Do What Is Right: Their ethical compass guides them to do what is right, not what is easy.
- Elevate Each Other: They work together to leave an enduring legacy.
- Pillars:
- Culture: Empowering team members to improve residents’ lives daily.
- Community: Valuing relationships with residents, neighborhoods, and partners who share their vision.
- Connectivity: Enriching lives through meaningful connections and technology.
Tricon Residential’s residents’ experience is at the forefront of their thinking, and it drives their actions every day.
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