Britain's Warner Estate has agreed to pay 700 pence a share for JS Real Estate in a deal that values the AIM-listed property company at £114 mln (EUR 173 mln). Warner said in a statement on Friday that the acquisition would improve its position ahead of conversion to a real estate investment trust (REIT) later this year.
Britain's Warner Estate has agreed to pay 700 pence a share for JS Real Estate in a deal that values the AIM-listed property company at £114 mln (EUR 173 mln). Warner said in a statement on Friday that the acquisition would improve its position ahead of conversion to a real estate investment trust (REIT) later this year.
The offer represented a 10.3% discount on the closing price for JS Real Estate on Thursday, but JS Real Estate, which specialises in asset management and development in London and southern England, said the takeover would be a better option for JS than converting to a REIT itself. Warner announced it plans to issue 2.52 million shares at 850 pence each to raise £21.4 mln to partly fund the takeover of JS Real Estate.
Warner, which has a market capitalisation of £462 mln, said its conversion to a REIT would not take place before 1 April this year.