11th Jul 2025 08:33
(Alliance News) - Warehouse REIT PLC on Friday reversed advice to shareholders, recommending they vote in favour of a takeover offer from Blackstone Inc, rather than Tritax Big Box REIT PLC.
Both Warehouse and Tritax are London-based real estate investment trust that invest in large logistics warehouses. In early June, Warehouse REIT had agreed to a takeover from New York-based private equity firm Blackstone, which valued it business at GBP470 million.
Blackstone had previously offered 113.40 pence per share for Warehouse, but lowered its "final" cash bid to 109.00p, due to asset valuation concerns raised during due diligence. Warehouse opted to withdraw its recommendation in favour of Blackstone, agreeing to a rival cash and shares bid from Tritax.
However, Blackstone on Thursday announced a higher offer for 113.4p per share in cash, plus a 1.6p interim dividend. This puts the total value of Blackstone's new offer at 115.00p per share, or GBP489 million for the entire company - matching the offer it originally made, back in March.
This is roughly 3.5% higher than Tritax's bid. When Warehouse accepted the offer, it was worth 114.2p per Warehouse share.
However, Tritax is offering a combination of cash and shares, and its stock has fallen 3.5% in the past month. Based on Warehouse and Tritax's closing prices on Tuesday, the deal's total value is 111.1p per Warehouse share.
Tritax on Thursday asserted that its approach "represents a more compelling proposition for Warehouse shareholders, providing them with the opportunity to participate in the future upside of both the Warehouse portfolio and the [Tritax] portfolio within the combined business, alongside the cash component."
Warehouse REIT Chair Neil Kirton said on Friday that the board had "carefully evaluated both offers" and had been swayed by Blackstone's sweetened bid, since it is a "certain all-cash offer" above Tritax's price.
Also on Friday, Warehouse noted Blackstone's statement that the deal would be implemented via takeover offer, rather than a scheme of arrangement, and that Blackstone's subsidiary, Wapping Holdings Ltd, has agreed to buy a 10.49% stake in Warehouse at 113.4p per share.
Warehouse and Tritax Big Box shares declined marginally to 115.40p and 142.40p respectively on Friday morning in London. Blackstone shares were marginally higher at USD164.08 following after-hours trading in New York, having closed up 3.4% on Thursday.
By Holly Munks, Alliance News reporter
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Related Shares:
Warehouse ReitTritax Big Box