FTSE 100-listed warehouse property developer SEGRO PLC (LSE:SGRO) has agreed a takeover of Tritax Eurobox PLC (LSE:EBOX) 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.
Including debt, the offer values Tritax at around £1.1 billion with the equity valued at around £550 million.
In June, it was reported that Tritax Eurro was in the sights of Brookfield Global Asset Management and was considering a cash offer.
Tritax added soon after that it had received other approaches aside from Brookfield.
Robert Orr, Tritax Euro chairman, said it is “difficult macroeconomic environment for the property sector”, adding that the deal with Segro represents a compelling opportunity for shareholders to achieve a significant and immediate uplift in the value of their investment.
Segro chief executive David Sleath added: “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.”