Tritax EuroBox PLC on Wednesday said it has accepted a bid from fellow property investment firm Segro PLC, one of a number of approaches for the distribution centre specialist.
Under the deal Tritax EuroBox shareholders will receive 0.0765 of a new Segro share for every one held in Tritax EuroBox.
In addition, Tritax EuroBox shareholders will receive a dividend of around 1.05 pence per share in respect of the quarter to September 30.
The all-share deal values each Tritax EuroBox share at 68.4p, based on Segro’s closing share price of 880.00p on Tuesday.
Shares in Tritax Eurobox were flat at 66.50 pence in London early Wednesday. Segro fell 2.9% to 854.60p.
At Segro’s Tuesday price, the deal values Tritax EuroBox at £552 million. Including debt, the deal implies an enterprise value of around £1.10 billion.
The move by Segro comes after Brookfield Global Asset Management said in June that it was in the early stages of considering a cash offer for Tritax EuroBox.
Tritax EuroBox then said in July that it had attracted interest from other possible suitors, as well as Brookfield.
Tritax EuroBox said it had ‘carefully reviewed and negotiated a range of proposals’, which included offers in shares or cash.
Chair Robert Orr said the offer comes against the background of a ‘difficult macroeconomic environment for the property sector’.
He said: ‘The transaction with Segro represents a compelling opportunity for Tritax EuroBox shareholders to achieve a significant and immediate uplift in the value of their investment and stronger total shareholder returns.’
Segro Chief Executive David Sleath said: ‘This transaction offers the opportunity to acquire a high-quality portfolio of big box warehouses in core European markets which would complement and enhance our existing assets.
‘The management of the portfolio will be internalised on completion, taking advantage of economies of scale from our existing, locally-based operating platform.’
Segro expects the deal to be accretive to both EPRA net tangible asset per share and adjusted earnings per share immediately following completion.
The offer has the backing of Tritax Eurobox directors representing 0.8% of Tritax shares.
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