Brookfield has made a £557m cash offer to buy Tritax Eurobox, a bid compelling enough to mean the target’s board has now switched its recommendation away from an agreed share deal with SEGRO.
Brookfield has offered 69p in cash per Tritax EuroBox share, which Tritax said marks a premium of approximately 6% to the implied value of SEGRO’s earlier offer as at 9 October. Under the SEGRO deal, shareholders would receive 0.0765 SEGRO shares for each Tritax share, as well as a dividend of 1.25 cents.
Brookfield’s bid has been made via Titanium Ruth Bidco, controlled by one of its real estate funds.
“The terms of the acquisition represent an attractive premium for Tritax EuroBox shareholders over the terms of the SEGRO offer and accordingly the Tritax EuroBox shareholders are encouraged to take no action in respect of the SEGRO offer,” the deal announcement said.
Tritax EuroBox’s board said that “while the deliverability of the two offers is now similar, a cash offer from Brookfield would provide increased certainty for Tritax EuroBox shareholders as compared to continued market risk between now and completion for the SEGRO offer”, noting the changes in SEGRO’s share price since its deal was first recommended.
In its own statement, SEGRO said its all-share offer “would enable Tritax EuroBox shareholders to retain exposure to the European industrial and logistics sector at this point in the cycle, in the largest and most liquid REIT in Europe, or realise their position for cash given the significant liquidity in SEGRO’s shares”.
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