Huntingdon REIT, IAT Air Cargo change terms of merger agreement

WINNIPEG - A reverse takeover between Huntingdon Real Estate Investment Trust (TSX:HNT.UN) and IAT Air Cargo Facilities Income Fund (TSX:ACF.UN) has been turned into a merger that will see Huntingdon hold the majority of the resulting combined company.
The two companies announced Wednesday that the all-equity merger previously valued at $370 million had been amended.
IAT, which owns and leases aviation-related buildings, will now have its unitholders get 9.75 HREIT units, instead of the previously agreed upon 11.75 units, for every IAT unit held.
Based on Tuesday's trading price of 38 cents per HREIT unit, IAT unitholderw will be getting units worth approximately $3.51 for every one of their units instead of $4.23 as would have been the case if the deal didn't change.
Upon closing, IAT will hold 48 per cent of the merged company instead of a previous 53 per cent stake. The new company will operate 88 properties across Canada and will be led by current IAT president Zachary George.
Huntingdon and IAT said their respective trustees support the amended deal.
FrontFour Capital Group LLC, the majority stakeholder in IAT with a 45 per cent interest in the trust, has also confirmed its support of the amended deal and will own a 24.5 per cent stake of the combined company.
IAT unitholders will meet Dec. 7 to consider the amended merger proposal.