The board of Warehouse REIT has said it “would be minded to recommend” a Blackstone takeover to its shareholders after the private equity giant submitted a fifth and final bid for the business earlier this week.
The offer of 115p per share for the entire issued and to be issued share capital of Warehouse REIT valued the business at £489m.
In a statement, the board of Warehouse REIT said: “Having carefully considered the final indicative proposal with its advisers and consulted with the company’s major shareholders extensively following the announcement of a possible offer on 3 March 2025, the Warehouse REIT board has indicated to Blackstone that, should a firm offer be made on the financial terms set out above, it would be minded to recommend such an offer to Warehouse REIT shareholders, subject to the agreement of the other terms of the offer.
“Accordingly, the board has decided to engage in discussions with Blackstone in relation to these terms and to allow Blackstone to complete a limited period of confirmatory due diligence.”
Blackstone’s offer, which was 4.1% higher than the 110.5p per share bid tabled by Blackstone earlier this month, represents a premium of 40.2% to the one-month volume weighted average share price of 82p on 28 February 2025, a premium of 42.5% to the three-month volume weighted average share price of 80.7p and a premium of 4.9% to the two-year high closing share price of 109.6p on 17 April 2023.
Blackstone said the “final indicative proposal provides a highly deliverable and compelling alternative to shareholders, attributing a full valuation for the company and its future prospects”.
It added the financial terms of the proposal “are final and will not be increased, save that Blackstone reserves the right to revise and increase the financial terms of the final indicative proposal where: (i) there is an announcement of a possible offer or a firm intention to make an offer for Warehouse REIT by any third party; or (ii) the panel otherwise provides its consent (which will only be provided in wholly exceptional circumstances)”.
