SEGRO set to acquire Tritax EuroBox for £552m
Slough-based SEGRO has reached an agreement to acquire rival Tritax EuroBox.
Shareholders in Tritax will receive 0.0765 new Segro shares for each Tritax share. Based on Segro’s closing share price yesterday of 880p, the deal values each Tritax EuroBox share at 68.4p, putting a value of £552 million on the firm. Tritax EuroBox shares closed at 66.5p yesterday.
Once the deal is completed, 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.
Both SEGRO and Tritax EuroBox have pursued a strategy based on owning prime assets in Europe's major logistics hubs and along key transportation corridors, where occupier demand is most resilient.
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SEGRO believes that Tritax EuroBox's assets, most of which are located in SEGRO's existing core markets, will complement SEGRO's Continental European big box portfolio and strengthen this part of its business.
The Tritax EuroBox portfolio has strong income and growth characteristics, which align well with SEGRO's own investment objectives.
David Sleath, the 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."
The Tritax EuroBox directors intend unanimously to recommend that Tritax EuroBox Shareholders vote in favour of the resolutions relating to the Transaction.
Robert Orr, the 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."
