Segro pounces on Tritax Eurobox with all-share £552m offer

The London-listed warehouse giant Segro has made an offer for its smaller peer, Tritax Eurobox.

Sergo and Tritax Eurobox announced this morning they had reached an agreement on the terms of a recommended all-share offer by Sergo for the entire issued and to be issued share capital of Tritax Eurobox.

Segro has agreed to pay 0.0765 in new shares per Tritax share. In addition, Tritax shareholders will be entitled to receive and retain a dividend of 1.25 cents per share (1.05p) in respect of the quarter ending 30 September 2024.

Transaction value values each Tritax Eurobox share at 68.5p and 69.6p, respectively.

The deal represents a premium of 27 per cent to the closing price of each Tritax Eurobox share as of 31 May, the last business day before the offer period.

The deal has also been struck at a discount of 14 per cent to Tritax Eurobox’s last reported IFRS net asset value per share per share of 93.9 cents as of 31 March 2024.

Tritax Eurobox, advised by Lazard, Barclays, and Jefferies, has recommended the deal as “fair and reasonable.”

The transaction values Tritax Eurobox’s entire issued and to be issued ordinary share capital at approximately £552m, an enterprise value of approximately £1.1bn.

David Sleath, 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.

“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,” the boss added.