Segro in takeover talks with Brixton

first_imgThis morning the industrial REIT emerged as a prospective suitor by responding to Brixton’s earlier announcement that it was in discussion with parties.Segro stated that it was considering making an offer in the form of shares.It said: ‘Segro notes the announcement by Brixton earlier today and confirms that it has made a preliminary approach to the board of Brixton with a view to entering into discussions about a possible offer for Brixton. ‘Segro currently envisages that the consideration for any offer will be in the form of Segro shares. Segro would like to emphasize that there can be no certainty that an offer for Brixton will be forthcoming.’ Segro was the fourth REIT to raise new equity early when it carried out a £500m rights issue in March.In contrast, Brixton has not launched any type of equity raising, and is in need of at least £250m new equity combined with asset sales to prevent it from breaching the loan covenants on its debt pile when its portfolio is re-valued on 30 June – a date described by JP Morgan this morning as ‘D-Day’.Nomura, Brixton’s financial advisor, said earlier this month that there was ‘value in the business’.Segro shares rose 1% to 25p in the wake of the announcement, while Brixton’s increased 20% to 60p.last_img

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