Drum Income Plus REIT closed flat today, with Custodian REIT confirming as trading ended that it has agreed the terms of a £21.4m takeover of the business.
Custodian REIT will offer Drum shareholders 0.53 of its own shares for each Drum share they own.
Custodian said the exchange ratio is a 7.8% premium to Drum’s bid market closing price of 52p a month ago and an 81% premium to its share price of 31p back in March when it launched a strategic review.
Drum’s shares ended the day flat at 56.5p. Custodian edged up by 0.1% at 96.6p.
A takeover of Drum would be the latest in a wave of M&A activity in the listed real estate market since the onset of the Covid-19 pandemic.
Although Drum has been courted by a trade suitor, many of the larger takeovers have been by private equity firms, with analysts expecting other well-known public companies to be taken private.
The FTSE 100 closed at 7,138, down 0.4%. The FTSE 250 was down 0.1% at 24,194.
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