- Warehouse Reit
- 04 March 2025 08:22:34
Source: Sharecast
In a statement late on Monday, the consortium confirmed it had made a fourth indicative cash proposal of 110.5p per share on 23 February, which was rejected on 28 February.
The latest offer represented a premium of 34.1% to the closing share price on 28 February.
Under takeover rules, the consortium now has until 31 March to either announce a firm intention to make an offer or walk away.
At 0820 GMT, the shares were up 15.6% at 98.00p.
Shore Capital analyst Andrew Saunders said the possible offer undervalues an attractive outlook.
"The news of another hostile approach in the sector is not surprising to us coming just two weeks after a similar situation with Assura unfolded, although this one fails to fully reflect the full potential of the business in our minds and the unique attractions of the multi-let industrial real estate market," he said.
"After a couple of tough years, Warehouse REIT is seeing improved momentum in its investment case driven by strong rental growth, reduced debt, impending Radway disposal and a recently announced reduction in the ongoing management fee payable to its advisor, Tilstone."
He added: "The consortium is now considering its position, and while there is no guarantee an offer will be made, we would expect any further approach will need to be enhanced further to boost any chance of success.
"In any case, the business looks well positioned as it is to create value for its shareholders with recovering earnings momentum and dividend cover along with attractive growth in NTA."