Segro has reached agreement with the board of Brixton and announced its 'firm intention' to make an all-share offer to buy its rival.
Segro said its firm intention to make an offer for Brixton was conditional on a recommendation from the Brixton board and the satisfaction of the following non-waivable pre-conditions: (i) completion of final confirmatory due diligence by SEGRO; (ii) finalisation of documentation; and (iii) final approval of the offer by the Segro board.
Segro also confirmed, as tipped by Property Week, that the proposed offer will be accompanied by a further issue of new Segro shares in order to raise additional capital of up to £250m in cash.
It said there can be no certainty that any offer will be made even if the pre-conditions are satisfied.
Segro said the announcement was being made with the consent of the board of Brixton and a further announcement will be made when appropriate.
Segro's shares were down 2.2% and Brixton's shares were down more than 30% in early trading this morning.