Investment giant Brookfield has agreed the £557m takeover of Tritax EuroBox after gazumping SEGRO’s rival bid for the business.
The boards of Titanium Ruth Bidco – a newly formed company indirectly owned by one of Brookfield’s real estate private funds – and Tritax EuroBox, confirmed earlier today that they had reached agreement on the terms and conditions of a recommended cash acquisition for the entire issued and to-be-issued ordinary share capital of Tritax EuroBox.
Last month, SEGRO announced it had agreed the terms of a £552m all-share takeover of Tritax EuroBox. At the time, the boards of Tritax EuroBox and SEGRO said the deal presented a “compelling opportunity” for shareholders in both companies as it would deliver a significant uplift in value for Tritax EuroBox shareholders and add a portfolio of “well-diversified and high-quality logistics assets to SEGRO’s portfolio on attractive terms”.
Under the terms of the bid tabled by Brookfield, each Tritax EuroBox shareholder will receive 69p in cash for each share they hold. The offer represents a premium of approximately 6% to the implied value of the SEGRO offer of 65.1p and a premium of approximately 28% to the closing price of 53.8p per Tritax EuroBox share on 31 May 2024.
The directors of Tritax EuroBox said that given they intended to unanimously recommend Brookfield’s offer, they had decided to withdraw their recommendation of the SEGRO offer and propose to adjourn the SEGRO offer shareholder meetings convened for 24 October 2024.
Robert Orr, chair of Tritax EuroBox, said: “The board of Tritax EuroBox remains intensely focused on delivering value for Tritax EuroBox shareholders. The cash offer from Brookfield represents a premium to the current value of the SEGRO offer and ensures that Tritax EuroBox shareholders will benefit from a significant uplift over the undisturbed value of their investment with flexibility to reinvest as they see fit.”
Brad Hyler, head of real estate in Europe at Brookfield, said: “Tritax EuroBox has a high-quality portfolio of logistics assets in strategic locations across Europe. These assets are complementary to our existing portfolio and, using our global real estate expertise, we will actively manage these assets, provide access to capital, help build new relationships with our network of tenants and support the overall growth of the platform.”
