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Tritax Big Box aims to strengthen its position in the real estate market, it has announced plans to acquire UK Commercial Property (UKCP), a move that would propel it to become the fourth largest Real Estate Investment Trust (REIT) in the UK.
The proposed acquisition, valued at approximately GBP 924 million (USD 1.18 billion), marks a significant step for Tritax Big Box. Under the terms of the agreement, each shareholder of UKCP stands to receive 0.444 new shares of Tritax for every UKCP share they currently own. This valuation, based on Tritax�s closing price of 160.2 pence on February 9th, signifies a premium of 10.8% compared to UKCP�s closing price of 64.2 pence on the same day.
The decision has received a vote of confidence from UKCP directors, who intend to unanimously recommend that shareholders vote in favor of the deal during the company�s upcoming general meeting. This endorsement comes as Tritax highlights the potential benefits of the acquisition, including attractive asset management and capital recycling opportunities stemming from UKCP�s non-logistics assets, valued at GBP 475 million. Furthermore, Tritax anticipates immediate cost savings of approximately GBP 4 million per year following the merger.
Market reactions to the announcement have been positive, with Tritax�s shares rising by 1.5% and UKCP�s shares experiencing a 1.7% increase in early trading. This indicates investor optimism surrounding the proposed deal and its potential to create value for both companies and their stakeholders.
With the acquisition poised to reshape the landscape of the UK real estate market, Tritax Big Box�s bold move signals its ambition to strengthen its position as a leading player in the industry. As shareholders await the outcome of the impending vote, all eyes are on Tritax and UKCP as they navigate this pivotal moment in their respective trajectories.
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