FTSE 100-listed warehouse property developer SEGRO PLC has agreed the takeover of Tritax Eurobox PLC in an all-share offer.
The two boards announced a deal has been struck where shareholders in Tritax EuroBox will for each share they own get 0.0765 new SEGRO shares, plus will be entitled to receive a dividend of 1.25 euro cents per share (1.05p at the current exchange rate) for the quarter ending 30 September.
Based on the last closing of 880p of SEGRO's shares, the share element of the offer is valued at 67.32p and with the dividend that makes an offer price of roughly 68.37p, in line with the Tritax EuroBox closing price of 68.4p.
SEGRO said the offer represents a premium of 27% compared to the Tritax EuroBox closing price of 53.8p on 31 May, which it said was the last day before it made the offer.
The offer price is also a discount of roughly 14% to Tritax EuroBox's last reported IFRS net asset value of 93.9 euro cents per share as at 31 March and an implied topped-up net initial yield of 5.2%.
At the listed offer price, the deal values Tritax EuroBox at £552 million and, including its net debt as at 31 March 2024, implies an enterprise value of roughly £1.1 billion.
SEGRO, which had a market cap of £11.9 billion at the close yesterday, said benefits for EuroBox shareholders will include a more diversified logistics exposure, a 7% development yield, its "operational excellence", 7-8% annual earnings growth, increased investment capacity, and improved share liquidity with index access.