LONDON: Warehouse REIT PLC announced Monday that its Board received a final indicative, non-binding proposal from Blackstone Europe LLP on behalf of affiliated investment funds for a possible all-cash offer to acquire its share capital.
The proposed offer of 115 pence per share values Warehouse REIT at approximately £489 million and reflects a premium of up to 42.5% over recent trading averages. However, the proposal includes adjustments for an interim dividend payment, reducing the offer to 113.4 pence per share following the dividend’s April 11 payment date.
Having extensively consulted major shareholders since the initial proposal on March 3, the Board indicated it is inclined to recommend the offer, contingent on agreement over terms and limited confirmatory due diligence by Blackstone.
The proposal remains at a discount to Warehouse REIT’s EPRA net tangible assets per share but offers a marked increase over prior bids and trading benchmarks.
Further discussions are underway between the Board and Blackstone, whose offer could become firm subject to due diligence completion.