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UK's Warehouse REIT accepts $661 million Tritax bid to takeover Blackstone

UK's Warehouse REIT has accepted a 485.2-million-pound ($661-million) takeover bid from Tritax Big Box REIT. This is a departure from the previous agreement with Blackstone, which was reached in early June.

Tritax's offer of cash and stock values Warehouse at approximately 114.2 pence per Share as of June 24, the same day the agreement was announced. The offer also includes up to 1.6 pence in quarterly dividends per Warehouse share.

Blackstone offered 110.6 pence for each Warehouse share or approximately 470 million pounds. The offer also included a 1.6-penny dividend per share.

Warehouse Chair Neil Kirton stated in a press release that the Tritax deal was not only higher than the previous offer, but also allowed Warehouse shareholders to keep both the first and fourth quarter dividends.

Warehouse shares rose 5.2% in early trading to 112.4 pence and were amongst the top gainers of the FTSE Small-Cap index, while Tritax traded slightly lower.

Blackstone, a private equity company, did not respond immediately to a request for comment.

U.S. firms have recently been buying British assets, taking advantage of the market's comparatively lower valuations and stagnant growth.

Warehouse and Tritax announced that the directors of Warehouse had also withdrawn Blackstone's recommendation in favor of this latest proposal. Tritax added that it had received commitments from investors who hold about 8.36% shares of Warehouse.

(source: Reuters)