RDI REIT has announced an agreement on the terms of a £467.9m cash offer for the company by Starwood.
Starwood already owns 29.59% of the company and has made an offer of 121.35p for the remaining shares.
This price presents a premium of 33.1% to last night’s closing price of 91.2p and a 38.2% premium to the six month average share price of 87.2p.
It is, however, a 19.9% discount to the company’s last reported EPRA NAV of 151.5p (on 31 August 2020).
[QD comment: The deal, if voted for by shareholders, is reflective of the opportunity that exists in the listed property sector for takeovers due to the hefty discounts to NAV that many trade on. RDI had been trading at a significant discount for the last three years, but many other companies have not recovered their share price following the huge sell off last February when the global pandemic started to take a grip. We have seen many private equity companies building significant stakes in listed property companies so we shouldn’t be surprised if this is not the last takeover in this sector this year.]
Starwood first started building its stake in RDI REIT in July last year and said it was attracted to the company’s “high-quality” portfolio and management team.
It said the persistent discount had constrained RDI’s access to capital and therefore growth and added its evolution would be better suited under private ownership.
The directors of RDI intend to recommend unanimously the deal.
RDI : RDI REIT subject of £467.9m takeover approach
I hold shares in the company
much too low
Price offered is way below what was paid many years back and means big losses for patient shareholders who believed in the company and what was reported. Is this the only way out for those shareholders?
It is always possible that a counterbidder will emerge