McKay Securities has received a takeover approach from Canada’s Slate Asset Management, throwing into question a recommended £272m bid from Workspace.
Slate has asked McKay for access to due diligence information as it weighs an all-cash offer for McKay. McKay said Slate had not provided the board with a written indicative proposal in relation to a possible offer, but “has indicated verbally that it is considering making such a proposal”.
Under the UK’s takeover rules, Slate now has until 5pm on 20 April to make an offer for McKay or walk away.
Workspace and McKay announced the terms of their own deal earlier this month. Workspace plans to pay a mix of cash and shares to buy the REIT, valuing each McKay share at 297p, a discount of 7% on net asset value.
In its own statement, Workspace said: “The directors of McKay today reiterated their unanimous recommendation of the Workspace offer as announced on 2 March 2022.” A scheme circular for the agreed deal was also published today.
If Slate makes a move for McKay, it would be a second takeover in quick succession for the group. In February the group’s Slate Office REIT completed a £100m takeover of London- and Dublin-listed Yew Grove REIT.
As of mid-morning, McKay’s shares had risen by about 4% to 296p.
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