Tritax Big Box to Acquire UK Commercial Property in £924 Million Deal
British commercial-property investor Tritax Big Box has announced its plans to acquire UK Commercial Property REIT in an all-share offer. The deal, valued at approximately £924 million ($1.17 billion), will result in UK Commercial Property investors receiving 0.444 new ordinary Tritax shares for each UKCM share held. This agreement would see the stakeholders of UKCM owning around 23.3% of the merged company.
Tritax’s share price of 160.2 pence on Friday suggests a value of 71.1 pence per UKCM share in the possible offer, representing an 11% premium to its closing price of 64.2 pence on Friday. The offer comes after a series of proposals and negotiations, leading UKCM’s board to express their intent to recommend the deal, should a firm offer be made.
Tritax has secured non-binding letters of intent from existing shareholders, amounting to 56.5% of UKCM’s share capital, in favor of the deal. Both companies’ boards believe that the potential acquisition is strategically and financially beneficial, as it would establish a GBP6.3 billion portfolio focused on UK logistics assets. Furthermore, the deal would bring added opportunities for asset management and capital recycling, while also positioning the merged company as the fourth largest UK real estate investment trust in terms of market capitalization.
Analyst comment
Positive news. The acquisition of UK Commercial Property by Tritax Big Box is seen as financially and strategically beneficial. Shareholders have expressed support, and the deal would create a large logistics-focused portfolio. The market is expected to react positively, with both companies set to benefit from increased opportunities and a strong market position.
