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QTS Realty Trust stocks inch up to near-record price as $10bn Blackstone takeover fails to find competition

The stock deal is expected to close in the second half of 2021, subject to approval by QTS’ stockholders and the satisfaction of other customary closing conditions.

By João Marques Lima

Founder and Editor, The Tech Capital

2 Mins

July 22, 2021 | 12:00 AM BST

Stocks of QTS Realty Trust (NYSE: QTS) are close to an all-time high as the company announces the expiration of the 40-day “go-shop” period under which market investors could have put forward bids to acquire the company.

The “go-shop” period was pursuant to the previously announced definitive merger agreement under which Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, Inc., and other long-term perpetual capital vehicles managed by Blackstone (NYSE: BX) will acquire all outstanding shares of QTS common stock for $78.00 per share, or $10 billion, in an all-cash transaction.

The “go-shop” period expired at 11:59 p.m. Eastern Time on July 17, 2021, but was only announced days later.

The news sent QTS’ stock up 0.71% to $77.75 (July 21) after hours, the second-highest share value the business has experienced. Its highest share price was hit on July 6, 2021, at $77.9. QTS’ market capitalisation currently sits at $5.36 billion.

The REIT said that during the “go-shop” period, QTS, with the assistance of its financial advisors Jefferies LLC and Morgan Stanley & Co. LLC, actively solicited alternative acquisition proposals from potentially interested third parties.

None of the third parties contacted by QTS or its financial advisors provided an alternative acquisition proposal by the go-shop deadline, the company has clarified.

Upon expiration of the go-shop period, pursuant to the merger agreement, QTS became subject to customary “no-shop” provisions that limit QTS and its representatives’ ability to negotiate alternative acquisition proposals with or provide confidential information to, third parties, subject to exceptions specified in the merger agreement.

The North American and European operator with a footprint spanning more than seven million square feet has also announced that it will issue its financial results for the quarter ended June 30, 2021, after market close on Tuesday, August 3, 2021.

However, QTS said will not conduct a second-quarter 2021 earnings conference call due to the perpetual acquisition by Blackstone.

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João Marques Lima

Founder and Editor, The Tech Capital

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