Tritax EuroBox, a Reit investing in European distribution centres, has stated that it has not yet received a cash offer from Brookfield Asset Management, despite speculation.
Brookfield has announced it is in the “early stages” of assessing a potential cash offer for the entire issued share capital of Tritax EuroBox. In response, however, the Reit’s board published an announcement on the London Stock Exchange today (4 June) saying nothing formal has been received.
See also: Tritax Big Box agrees terms over UKCM combination
It stated: “There can be no certainty that any firm offer will be made by Brookfield nor as to the terms of any such offer.
“A further announcement will be made as appropriate. In the meantime, shareholders are advised to take no action.”
Brookfield must either announce its firm intention to make an offer for Tritax Eurobox, or formally state it will not make an offer for the Reit, by 5pm on 1 July.
Tritax Eurobox, which has £1.5bn of total assets under management, is currently trading on a discount to NAV of 33.2%, according to AIC data, and is 99% geared.
See also: AEW Europe CEO Wilkinson: Why we took on beleaguered Home Reit
The company has been embarking on a “strategic revival”, with the its portfolio valuation falling by 2.9% in its latest half-yearly results. As part of the published results, board chair Robert Orr said: “Despite the progress with our strategic priorities and well-positioned portfolio, the board remains acutely aware of the significant share price discount to NAV.
“The board is in regular dialogue with the manager and the board’s advisers about how to address this issue, and there is a clear alignment and focus to deliver value for all shareholders in an effective and efficient manner.”
