SEGRO PLC (LSE:SGRO) confirmed this morning that it will not increase or enhance the terms of its current all-share offer for Tritax Eurobox PLC (LSE:EBOX), but has agreed a deal with rival suitor Brookfield Asset Management (TSX:BAM, NYSE:BAM) to buy some assets anyway.
Under the terms of its existing all-share proposal, SEGRO would pay 0.0765 new shares for each existing Eurobox share, but following a fall in the SEGRO share price, the deal values Eurobox at 59.6p compared with the 69p in cash offered by Brookfield.
With SEGRO’s offer now likely to lapse at the deadline later this week, it has agreed a deal with Brookfield so that if the Canadian giant is successful in acquiring Eurobox, SEGRO intends to acquire a portfolio of six EuroBox assets in the Netherlands and Germany from Brookfield for a total cash consideration of €470 million.
The Tritax Eurobox board reiterated its unanimous recommendation for shareholders vote in favour of the Brookfield offer.
Shares in Eurobox fell 2.3% to 68.4p and SEGRO fell 0.3% to 776p on Tuesday morning.
Analysts at Shore Capital said: "While it is disappointing that SEGRO’s full bid for EBOX looks likely to have stalled, not helped by the wider weakness in REIT share prices (Reeves, Trump effects) there is still a silver lining in the cloud and the investment case remains highly attractive in our view."