Custodian REIT unveils potential bid for Drum Income Plus REIT

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Under the possible offer, Drum Income investors will receive 0.535 Custodian REIT shares for each share they hold in the firm, giving it a total value of around £21.6mln

() has revealed that it is in discussions to potentially acquire Drum Income Plus REIT PLC through a share exchange.

In its own announcement on Wednesday, Drum Income said the offer under consideration will see investors offered 0.535 Custodian REIT shares for each share they hold in the firm, which will value the company at around £21.6mln based on Custodian’s closing price on August 3 of 105.8p.

READ: Custodian REIT sells industrial properties at premium to book value

The offer represents an 8.8% premium on Drum Income’s closing bid price on August 3 of 52p.

Drum Income also said that the board has confirmed the offer is at a value its board “would be minded to recommend”, adding that Custodian has already received support from Drum Income’s largest shareholder, Seven Investment Management, which owns a 68.76% stake in the group.

Custodian believes the merger will allow Drum Income’s shareholders to gain exposure to “a larger portfolio with more diversity by sector and geography” as well as a holding in a “significantly larger company”.

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