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Yew Grove REIT subject of takeover offer

North American real estate investment trust (REIT) Slate Office REIT has agreed a deal to buy London-listed Irish office investor Yew Grove REIT for a consideration of €177.4m.

The deal would see Slate acquire the entire issued and to be issued share capital of Yew Grove at a price of €1.017 per share. The cash offer, if made, values Yew Grove at around €127.8m, which together with total reported borrowings of €49.5m implies an acquisition enterprise value of €177.4m.

The cash offer, if made, will represent a premium of around 1.7% to Yew Grove’s closing share price of €1.00 on 15 November 2021. It is also a 1% premium to its last reported NAV of €100.64 on 30 June 2021.

 Accordingly, if the Cash Offer is made, the

Yew Grove’s board have agreed to unanimously recommend that Yew Grove shareholders vote in favour of the offer, if it is made. The board has committed to do so in respect of their own beneficial holdings of, in aggregate, 5,514,350 Yew Grove shares which represent approximately 4.41% of the issued share capital.

The board said it had taken into account a number of factors, including the following:

  • at the time of its IPO in 2018, Yew Grove targeted building a property portfolio worth between €300 and €500 million over the following three years;
  • the directors are conscious of the challenges of raising capital at the scale and timeframe required to fully exploit Yew Grove’s attractive investment pipeline;
  • the Acquisition allows Yew Grove Shareholders to realise their full investment in Yew Grove for cash in the near term at an attractive valuation; and
  • the Acquisition implies a 1.7% premium to Yew Grove’s closing share price of €1.00 on 15 November 2021.

The making of the cash offer is conditional on the closing of the bought deal offering by Slate for subscription receipts and convertible unsecured subordinated debentures, which bought deal offering was announced by Slate on 15 November 2021.

YEW : Yew Grove REIT subject of takeover offer

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