Warehouse REIT PLC (AIM:WHR) directors have unanimously recommended a new, higher bid from Blackstone, and have withdrawn their backing of the Tritax Big Box REIT PLC (LSE:BBOX) offer.
Blackstone came back yesterday with a revised offer and a purchase of a 10.49% stake in Warehouse REIT, having appeared to have lost out when the REIT's board agreed a merger with its fellow FTSE 350 trust.
Blackstone increased its cash offer to 113.4p and included a right for shareholders to receive and retain the REIT's fourth interim dividend of 1.6p per share, which is expected to be paid later this month, making a total of 115.0p.
This, they noted, was 3.5% higher than the value of the BBOX offer, based on BBOX's closing share price on 9 July of 143.2p.
The Tritax offer was made up of cash and shares, with Warehouse shareholders to have received 0.4236 new BBOX shares plus 47.2p in cash for each share held.
Warehouse REIT chair Neil Kirton said the increased offer was on terms "substantially in line" with the possible offer announced by Blackstone on 25 March.
"The Warehouse independent directors have carefully evaluated both offers, while remaining firmly focused on their fiduciary duties to Warehouse REIT shareholders," investors were told.
"The increased Blackstone offer provides Warehouse REIT shareholders with a certain all-cash offer, at a premium to the BBOX offer, which comprises a mixed consideration of new BBOX shares and cash, and the Warehouse independent directors now switch their recommendation in favour of the increased Blackstone offer accordingly."