SEGRO has agreed a deal to acquire Tritax EuroBox, an investor in logistics real estate, in an all-share transaction which values the latter at about £552m.
The boards of the two listed businesses have reached agreement on the terms of a recommended all-share offer by SEGRO.
They said the transaction – which values each Tritax EuroBox share at 68.4 pence – offers 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.
Immediately following completion, it is expected that SEGRO shareholders will own approximately 96 per cent, and Tritax EuroBox shareholders will own approximately 4 per cent, of SEGRO’s enlarged issued share capital.
David Sleath, Chief Executive of SEGRO, said: “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.
“The management of the portfolio will be internalised on completion, taking advantage of economies of scale from our existing, locally-based operating platform.
“We intend to apply the long-established SEGRO strategy of disciplined capital allocation and operational excellence, based on an efficient and resilient corporate and capital structure and the Responsible SEGRO principles as we do for all assets we own and manage.
“While shareholders can expect this approach to lead to some capital recycling, we recognise the high quality of the portfolio assembled by the manager and look forward to working with it for the benefit of our new and existing shareholders.”
Robert Orr, chair of Tritax EuroBox, said: “As set out at Tritax EuroBox’s half-year results in May this year, the board has been focused on how best to deliver value for Tritax EuroBox shareholders in an effective and efficient manner.
“The board would like to thank the manager for the important role it has played in curating and managing Tritax EuroBox’s high-quality asset base, and actively managing the portfolio in order to achieve the best outcome for shareholders in the context of a difficult macroeconomic environment for the property sector.
“The transaction with SEGRO represents a compelling opportunity for Tritax EuroBox shareholders to achieve a significant and immediate uplift in the value of their investment and stronger total shareholder returns, with the option either to retain exposure to the European industrial and logistics sector through holding shares in the largest and most liquid REIT in Europe, or to sell their New SEGRO Shares for cash, taking advantage of SEGRO’s significantly greater trading liquidity.
“The board is pleased to recommend the transaction to Tritax EuroBox shareholders.”
