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Glass Lewis Joins ISS in Recommending Against H&R REIT Takeover Deal
Glass Lewis joins ISS in urging H&R investors to reject the REIT takeover deal led by GO Residential.
Key points
- Glass Lewis and ISS both recommend that H&R investors vote against the $3.4-billion acquisition led by GO Residential REIT.
- At least two-thirds of votes cast at a special shareholder meeting scheduled for Nov. 13 must favour the proposal.
- H&R first launched a strategic review in February 2025 after receiving an unsolicited takeover offer.
Why it matters. Opposition from the two main proxy advisers could weigh heavily on whether the takeover succeeds, since they hold considerable sway over institutional investors' votes.
Proxy adviser Glass Lewis on Monday urged H&R unitholders to oppose the $3.4-billion acquisition led by GO Residential Real Estate Investment Trust. Glass Lewis said the deal "should be seen as a firm non-starter for unaffiliated H&R investors" and faulted a "largely passive board" for its sale process. ISS issued its own recommendation last week, and at least two-thirds of votes cast at a special shareholder meeting scheduled for Nov. 13 must favour the deal.
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Glass Lewis Joins ISS in Recommending Against H&R REIT Takeover Deal
Proxy adviser Glass Lewis on Monday recommended that H&R REIT investors vote against a multibillion-dollar deal to sell one of Canada's largest property portfolios. The recommendation followed a similar call from ISS, another influential proxy adviser, and deepened the setback for the transaction. Glass Lewis said a takeover led by GO REIT should be considered a firm non-starter for unaffiliated H&R investors. H&R's holdings span residential, industrial, office and retail properties, which makes selling the whole portfolio to a single buyer more complicated. The advisers' views carry weight with institutional shareholders, so the vote is likely to be closely watched. The final outcome will depend on the shareholder vote and any changes the parties make to the offer.