Segro makes takeover approach to Brixton

UK industrial property REIT Segro has confirmed that it has approached its struggling peer, Brixton, about a potential takeover bid. In a statement on Friday, Segro said it envisaged that any offer would be in Segro shares but it said it reserves the right to vary the form of consideration. The company added: 'Segro would like to emphasise that there can be no certainty that an offer for Brixton will be forthcoming. A further announcement will be made in due course if appropriate.'

Earlier, Brixton said it was in discussions with a 'small number of parties' following preliminary approaches in relation to possible offers for the company. 'These discussions are at a very early stage and there can be no certainty that any offer will be made'. The board of the industrial property group is also working on mitigating the risk of a covenant breach when the gearing ratios are tested on the basis of the net assets published in the half-year results, according to Brixton's statement.

'The board of Brixton continues to progress its options to provide the group with additional financial flexibility. These options include a restructuring of the company’s debt arrangements, a potential equity raising and further asset disposals,' the company said