15th Dec 2020 08:52
(Alliance News) - Segro PLC on Tuesday said it has unconditionally agreed to acquire a further 75% stake in smaller Paris-listed property peer Sofibus Patrimoine for EUR178.6 million.
In 2018, Segro acquired a 19% stake in Sofibus Patrimoine for EUR20.5 million
On Monday, it said it will acquire the further 75% stake through separate transactions with controlling shareholders of Sofibus - the Hottinguer Concert Party - who own 56% and with several minority shareholders owning around 19%.
The FTSE 100-listed real estate investment trust stated the acquisition at EUR313.71 per share will take its stake to 94%. It added it will file a simplified mandatory tender offer for the Sofibus shares not already owned, at the same price, with the intention to implement a squeeze-out procedure in order to delist Sofibus from Euronext Paris.
In 2019, Sofibus - which has a market capitalisation of EUR162.7 million - reported rent of EUR12.6 million and earnings before interest, tax, depreciation, and amortization of EUR9.7 million.
"This is a rare opportunity to significantly increase our exposure to urban warehousing in Paris which has long been a core market for Segro. Our local team has intimate knowledge of the Paris warehouse market and will deploy its expertise to add value by actively managing Sofibus's existing assets and by developing new, state of the art warehousing on the adjacent plots of land to satisfy growing occupier demand," said Segro Chief Executive David Sleath.
Shares in Segro were trading 0.8% lower at 901.20 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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