April 4 (Reuters) - Plazacorp Retail Properties Ltd raised its offer for KEYreit to about C$124 million ($122 million) as it looks to top Huntingdon Capital Corp’s unsolicited bid.
Plazacorp increased its offer by 35 Canadian cents to C$8.35 per unit, topping Huntingdon’s offer of C$8 per unit for the entire company.
The increased cash-and-stock offer, which values KEYreit at C$325 million including debt, represents a premium of 3 percent to the stock’s closing price on Wednesday.
KEYreit shares were up 1 percent at C$8.16 in afternoon trading on the Toronto Stock Exchange on Thursday.
KEYreit recommended unitholders accept Plazacorp’s raised offer and advised them not to tender to Huntingdon’s bid.
Canadian REITs, or real estate investment trusts, have outperformed the broader stock market in the last 12 months, driven by strong demand for both commercial and retail space.
KEYreit, which has tenants that include fast-food chains like KFC and Pizza Hut and retailers like Shoppers Drug Mart , Staples Inc, has been trying to fend off Huntingdon’s unsolicited approach for the last two months.
Huntingdon in March raised its offer to either C$8 in cash, or C$6 in cash and 0.16 of a Huntingdon common share, valuing KEYreit at about C$119 million to match Plazacorp’s offer. Huntingdon had earlier offered C$7 per unit of KEYreit.