4th Aug 2021 13:13
Drum Income Plus REIT PLC - real estate investor, primarily in the office, retail and industrial sectors - In talks over a possible all-share takeover offer by real estate investment trust Custodian REIT PLC. Deal would see ratio of 0.535 of a Custodian share exchanged for each Drum Income share, giving an implied value for Drum Income of GBP21.6 million. Says can be no certainty any firm offer will be made.
"The board of Drum has confirmed to Custodian that the possible offer is at a value the board of Drum would be minded to recommend," the company says.
Custodian notes it has received an irrevocable undertaking from Drum's largest shareholder, Seven Investment Management, to support the possible offer. The irrevocable undertaking is in respect of 26.3 million shares, representing about a 69% stake in Drum.
Drum Income stock price: 53.00 pence; down 11% Wednesday
Year-to-date change: 71% higher
Custodian REIT stock price: 104.60 pence, down 1.1% Wednesday
Year-to-date change: 19% higher
By Will Paige; [email protected]
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