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SEGRO agrees £552m Tritax EuroBox takeover

News

Tim Burke

04 September 2024

Industrial

SEGRO has agreed the terms of a £552m takeover of Tritax EuroBox.

The deal would see Tritax EuroBox shareholders receive 0.0765 SEGRO shares for each Tritax share they hold, as well as a dividend of 1.25 cents.

Based on SEGRO’s closing share price of 880p on 3 September, the offer values each Tritax EuroBox share at 68.4p, a 27% premium to its three-month average and a 14% discount to March net asset value. The deal values the company, including its debt, at £1.1bn.

Announcing the recommended deal, the companies said it was “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”.

SEGRO chief executive David Sleath 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: “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.”

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SEGRO, Tritax EuroBox

SEGRO has agreed the terms of a £552m takeover of Tritax EuroBox. The deal would see Tritax EuroBox shareholders receive 0.0765 SEGRO shares for each Tritax share they hold, as well as a dividend of 1.25 cents. Based on SEGRO’s closing share price of 880p on 3 September, the offer values each Tritax EuroBox share at 68.4p, a 27% premium to its three-month average and a 14% discount to March net asset value. The deal values the company, including its debt, at £1.1bn. Announcing the recommended deal, the companies said it was “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”. SEGRO chief executive David Sleath 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: “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.”