The board of the £3bn Tritax Big Box Reit has agreed terms over an all-share offer for the £834m UK Commercial Property Reit (UKCM).
The offer of 71.1p per UKCM share and approximately £924m for the trust’s entire issued share capital represents a 10.8% premium to UKCM’s closing share price of 64.2p on 9 February.
Should the deal be approved, UKCM shareholders would make up 23.3% of the enlarged Tritax Big Box.
In a stock exchange announcement this morning (12 February), the Tritax board noted that UKCM, excluding chair Peter Pereira Gray, said it is “minded to recommend it to UKCM shareholders”.
In their own announcement, the UKCM board said it is reviewing the offer and a further announcement would be made.
The two boards said the deal would bring together complementary logistics-oriented investment portfolios with a shared focus on resilient and growing income, while it would form the UK’s fourth-largest Reit with a market cap of £3.9bn.
Tritax Big Box is currently trading at a 16.2% discount to net asset value, while UKCM sits wider at 19.25%, according to the Association of Investment Companies.