Warehouse REIT PLC on Tuesday said it was evaluating a sweetened ‘final’ takeover proposal by suitor Blackstone.
Warehouse REIT said it is currently evaluating the final indicative proposal and will make a further announcement when appropriate.
The final indicative proposal of 115 pence from Blackstone Europe LLP includes a third dividend of 1.6p per Warehouse REIT share. It is a 40% premium to Warehouse REIT’s closing price of 82.4p per Warehouse REIT shares at the end of February, before it entered an offer period.
Warehouse REIT shares were up 2.1% at 104.50p each in London on Tuesday afternoon. It has a market capitalisation of £444.0 million.
The deal values the industrial warehouse investor at £489 million. Earlier this month, Warehouse REIT said it rejected a cash bid from a consortium comprising Sixth Street Luxembourg Sarl and Blackstone Europe. It valued it at £463 million.
‘Blackstone believes the final indicative proposal provides a highly deliverable and compelling alternative to shareholders, attributing a full valuation for the company and its future prospects. There can be no certainty that any offer for the company will be made,’ Blackstone said on Tuesday.
‘The financial terms of the final indicative proposal are final and will not be increased.’
Sixth Street Partners LLC said it does not plan to make an offer for Warehouse REIT, be it in consortium or alone, Blackstone noted.
Warehouse REIT also on Tuesday announced it completed a refinancing of its existing term loan and revolving credit facility totalling £300 million.
It explained the new margin of 1.75% is 45 basis points lower than previously, sealing cost savings of £1.2 million on an annualised basis.
‘The new facility comprises a £200 million term loan and £100 million RCF and replaces the company’s previous £320 million facility. The term is unchanged at three years and the company is pleased to be working with its existing club of lenders, HSBC, Bank of Ireland, NatWest and Santander,’ Warehouse REIT said.
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