Segro has agreed an all-share takeover for Brixton that values its industrial property rival at almost 40% below its market price on Friday.

Segro confirmed yesterday that it had made a lower-than-expected bid for its rival, which caused Brixton’s shares to tumble 30 per cent to 19.25p.

The two companies have agreed to swap 1.75 shares in Segro for every Brixton share, equivalent to about 40p a share and significantly less than the closing price of 62?p on 19 June.

The £107m deal values Brixton at less than its market capitalisation of £170m at the close of trading on Friday, a discount that is thought to reflect a large portfolio of derivatives that are owned by Brixton.

Financial Times