KEYreit's largest shareholder announces his intention to accept only Plazacorp shares and not cash

 KEYreit's largest shareholder announces his intention to accept only Plazacorp shares and not cash

- Cites yesterday's Dundee Securities' report urging unitholders to accept Plazacorp's bid over Huntingdon's bid that expires April 11, 2013
 
KEYreit (TSX: KRE.UN) announced that John I. Bitove, the CEO of KEYreit and its largest unitholder, has advised that he intends to elect to receive the consideration for his units tendered under the $8.35 offer by Plazacorp Retail Properties Ltd. (the "Plazacorp Offer") solely in common shares of Plazacorp ("Plazacorp Shares").  As a result of this, more cash will be available to other KEYreit unitholders under the Plazacorp Offer.  Assuming that all other unitholders elect to tender to the cash alternative under the Plazacorp Offer, unitholders would effectively be entitled to receive approximately $5.00 in cash and 0.6862 of a Plazacorp Share.  Based on the closing price of the Plazacorp Shares on April 9, 2013 of $4.65, and assuming full proration, this implies an $8.18 per unit value for KEYreit unitholders under the Plazacorp Offer.
 
"Simply put, Plazacorp has placed a higher value on KEYreit than Huntingdon and I am fully committed to the Plazacorp Offer and to the future of KEYreit with Plazacorp," stated Mr. Bitove, " to show my commitment and belief in our future together I will be taking all of my consideration in shares of Plazacorp."
 
Referring to the Dundee Securities report issued on April 9, 2013, Mr. Bitove noted that he was aligned with Dundee's analysis that "1) PLZ's offer implies an economic value higher than $8.00 in the long-term, assuming PLZ shares trade back to their fundamental value; and 2) a successful HNT offer would create an illiquid stub entity at KEYreit with an uncertain value", two strong reasons to stick with Plazacorp.
 
How to Withdraw Units Tendered to the $8.00 Huntingdon Offer
 
Unitholders who have tendered units to the $8.00 Huntingdon Offer and who wish to obtain advice or assistance in withdrawing their units are urged to contact their broker or Kingsdale Shareholder Services Inc., the information agent retained by KEYreit, at 1-888-518-1562.
 

on April 10, 2013