Industrials REIT agrees final cash offer with Blackstone, shares surge
Industrials REIT surged on Monday after it reached an agreement with Blackstone on a possible cash offer at 168p per share.
The final offer represents a premium of 42.4% to the closing share price on 31 March.
Following a period of "extensive negotiations", Industrials REIT said it has indicated to Blackstone that it plans to recommend the financial terms of the final offer to shareholders, should a firm intention to make an offer be announced on such terms.
Blackstone and Industrials REIT are targeting the announcement of a firm intention to make an offer by 14 April and said a further announcement will be made as appropriate.
Broker Peel Hunt, which rates the stock at ‘hold’, said: "The price, at a small premium to the September EPRA NTA per share (the EPRA NDV per share was 168p, should inherit the benefit of MLI's fixed rate debt) looks very good given that industrial asset values have fallen by 22% since then, according to the CBRE monthly index."
At 1015 BST, the shares were up 38% at 162.50p.