Trafford Park owner agrees to £105m deal from Segro

Brixton, the UK's largest industrial property landlord and owner of 2.5m sq ft in Trafford Park, Greater Manchester, has reached an agreement on an all-share offer from Segro to buy the company.

In an announcement made on the London Stock Exchange, Segro said it would make an offer of 1.750 of its shares for each Brixton share. Based on Segro's current share price of 22p, this values Brixton at £105m.

The industrial REIT also 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.

The statement also said: "Segro currently envisages 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."

Segro said there can be no certainty that any offer will be made even if the pre-conditions are satisfied and the announcement was being made with the consent of the board of Brixton.

Segro said it will be making a further announcement "when appropriate".