Segro has launched a £552 million takeover bid for Tritax EuroBox.
With a market capitalisation of £11.9 billion, the UK’s largest real estate investment trust is offering Tritax EuroBox shareholders 0.0765 new Segro shares for each share they own and they are entitled to receive and retain a dividend of 1.25% per share in respect of the quarter ending 30 September 2024.
The boards of both logistics companies believe the transaction “is a compelling opportunity for shareholders in both companies, delivering a significant uplift in value for Tritax EuroBox shareholders and adding a portfolio of well-diversified and high-quality logistics assets to Segro’s portfolio on attractive terms”.
Tritax EuroBox said it had received or solicited expressions of interest regarding a sale from a number of parties since the offer period started on 3 June 2024. Brookfield said in June that it was in the early stages of assessing a cash offer for the company, as reported. The Canadian investor declined to comment when asked whether it would drop its bid or launch a counter bid.
The price reflects a 27% premium to Tritax EuroBox’ closing price of 53.8 pence as of 31 May 2024 but a 13% discount to the company’s last reported net asset value, measured using international financial reporting standards.
Segro expects to internalise the management of the portfolio through termination of the existing investment management agreement with the manager. It is also expected that there will be additional cost savings from the removal of other corporate expenditure associated with Tritax EuroBox being an independent listed entity.
(Updated on 4 September with a declined to comment from Brookfield in the fourth paragraph)