ING UK Real Estate Income Trust (REIT), led by chairman Nick Thompson, yesterday agreed an offer for Rugby Estates Investment Trust (Rugby REIT),
The cash offered for Rugby REIT of 63p per share is a significant improvement on the 41p offered by Laxey Partners in November last year which failed to secure shareholder support.
Philip Kendall, chairman of Rugby REIT said: “As part of our strategic review announced late last year, we concluded that the interests of Rugby REIT shareholders would be best served by either an orderly disposal of the portfolio or a sale to another group.”
He added; “We have concluded that the certainty of value and choice of consideration provided by ING UK REIT’s offer delivers a more attractive alternative for Rugby REIT Shareholders.”
Rugby REIT said its portfolio was valued at £68.3m in December.
Nicholas Thompson, chairman of ING UK RET, said: “We believe this represents a compelling transaction for both our own shareholders and those of Rugby REIT.”
ING UK REIT said the deal would boost its London commercial property portfolio.