ARGAN and WDP propose all-share merger to create €13 billion logistics REIT

The friendly deal offers 3 new WDP shares plus an €11 exceptional distribution per ARGAN share, implying a €79.22 valuation and a 21% premium to ARGAN’s Thursday close.

Summary

ARGAN and Belgium's WDP said they plan to merge in an all-share deal that would create a company worth about €13 billion. Under the proposed terms, ARGAN shareholders would receive 3 newly issued WDP shares for each ARGAN share, and ARGAN would also propose an exceptional €11-per-share payout before completion. The companies said that implies a valuation of €79.22 per ARGAN share, representing a 21% premium to ARGAN’s Thursday closing price of €65.40. The announcement is the latest step in a previously outlined friendly combination aimed at building a larger European logistics real estate platform.

Terms & Concepts
  • REIT: A company structure that owns or finances income-producing real estate and typically distributes a large share of earnings to shareholders.