SEGRO confirms Brixton terms, raises £250m

9th Jul 2009 07:56

The boards of property groups SEGRO and Brixton have agreed the terms of their merger, to be effected by an offer by SEGRO for Brixton.Brixton shareholders are being offered 0.175 of a consideration share, equivalent to 1.75 SEGRO shares prior to the SEGRO share consolidation, for each Brixton share.The terms are unchanged from those indicated on 22 June, and value the entire issued share capital of Brixton at about £109.4m and each Brizton share at 40.25p, based on the closing price of SEGRO shares on 8 July 2009.In conjunction with the merger announcement SEGRO has announced plans to raise £250m by way of a placing and open offer of 119m new SEGRO shares at 210p per share.SEGRO has also announced offers to buy back Brixton bonds. Holders of Brixton bonds due to mature in 2010 will be able to sell them to SEGRO at a cash purchase price of 99% of their principal amount.SEGRO is also offering to buy up to £50m of Brixton bonds due in 2015 and 2019 at cash purchase prices of 74% and 72% (respectively) of their principal amounts.Holders who tender Brixton Bonds prior to an early participation deadline will receive an early tender fee of 1% of the principal amount of their Brixton bonds accepted by SEGRO for tender. SEGRO expects to terminate the tender offer if the merger has not become effective prior to the expiration date of the tender offer.