REG - Industrials REIT Ltd - CASH CONSIDERATION CURRENCY EXCHANGE RATE

Industrials REITAnnouncement

20/06/2023 08:00

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RNS Number : 2066D  Industrials REIT Limited  20 June 2023

(#DN1) NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.

FOR IMMEDIATE RELEASE

20 June 2023

RECOMMENDED FINAL* CASH OFFER

for

Industrials REIT Limited

by

Sussex Bidco LP

(a newly-formed limited partnership indirectly owned by investment funds
advised by affiliates of Blackstone Inc.)

to be effected by means of a Court-sanctioned scheme of arrangement under Part
VIII of the Companies (Guernsey) Law 2008, as amended

PUBLICATION OF CASH CONSIDERATION CURRENCY EXCHANGE RATE

On 31 May 2023, the board of Industrials REIT Limited ("Industrials")
announced that at a Court Meeting of Scheme Shareholders and General Meeting
of Industrials Shareholders held on the same date as the announcement, the
necessary resolutions had been duly passed to implement the recommended final
cash offer made by Sussex Bidco LP ("Bidco") to acquire the entire issued and
to be issued share capital of Industrials (the "Acquisition") by way of a
Court-sanctioned scheme of arrangement under Part VIII of the Companies
(Guernsey) Law, 2008 (as amended) (the "Scheme").

The Scheme remains subject to certain conditions, including sanction by the
Court at the Court Hearing (expected to take place later today) and the
delivery of a copy of the Scheme Court Order to the Guernsey Registry.

* The financial terms of the Acquisition are final and will not be increased,
except that Bidco reserves the right to increase the Final Offer Price where:
(i) there is an announcement of a possible offer or a firm intention to make
an offer for Industrials by any third party; or (ii) the Panel otherwise
provides its consent.

Cash Consideration Currency Exchange Rate

It was disclosed in the Scheme Document that Scheme Shareholders registered on
the South African Register will receive the Cash Consideration payable to them
under the Scheme in South African rand converted at the GBP/Rand Exchange
Rate. As at the date of this announcement, the GBP/Rand Exchange Rate is ZAR
23.365 for each GBP 1.00 and this conversion rate shall be used for the
Scheme. Accordingly, subject to the sanction of the Court, the Cash
Consideration payable under the Scheme to such Scheme Shareholders of 168
pence per Scheme Share will be equal to ZAR 39.25320 (39 253.20 ZAR cents) per
Scheme Share.

Full details of the Acquisition are set out in the Scheme Document.

General

The terms of the Scheme are set out in the scheme document published by
Industrials on 9 May 2023, a copy of which is available on Industrials'
website at www.industrialsreit.com (http://www.industrialsreit.com) (the
"Scheme Document").

Capitalised terms used but not defined in this announcement (the
"Announcement") have the meanings given to them in the Scheme Document. All
references to times in this Announcement are to London times, unless otherwise
stated.

Enquiries:

 

 Industrials                                                           +44 20 3918 6600
 Paul Arenson
 Julian Carey
 James Beaumont
 Numis (Joint Financial Adviser and Corporate Broker to Industrials)   +44 20 7260 1000
 Hugh Jonathan
 Stuart Ord
 Eastdil Secured (Joint Financial Adviser to Industrials)              +44 20 7074 4950
 Max von Hurter
 Tomas Ribeiro
 Brunswick Group (PR Adviser to Blackstone and Bidco)                  +44 20 7404 5959
 Azadeh Varzi

 Peter Hesse
 FTI Consulting (Financial PR Adviser to Industrials)                  +44 20 3727 1000
 Richard Sunderland
 Richard Gotla
 Blackstone/Bidco                                                      +44 75 5367 3528
 Dafina Grapci-Penney
 Rothschild & Co (Lead Financial Adviser to Blackstone and Bidco)      + 44 20 7280 5000
 Alex Midgen
 Sam Green
 Jake Shackleford
 RBC Capital Markets (Financial Adviser to Blackstone and Bidco)       +44 207 653 4000
 Charlie Foster
 Paul Lim
 Nik Ingstrup

 

Java Capital is acting as JSE sponsor to Industrials.

 

Important notices

 

Numis Securities Limited ("Numis") which is authorised and regulated in the
United Kingdom by the FCA, is acting as the financial adviser and Rule 3
financial adviser to Industrials and no one else in connection with the
Acquisition and the matters set out in this announcement and shall not be
responsible to anyone other than Industrials for providing the protections
afforded to clients of Numis, nor for providing advice in connection with the
Acquisition or any matter referred to herein. Neither Numis nor any of its
subsidiaries, affiliates or branches owes or accepts any duty, liability or
responsibility whatsoever (whether direct, indirect, consequential, whether in
contract, in tort, under statute or otherwise) to any person who is not a
client of Numis in connection with this announcement, any statement or other
matter or arrangement referred to herein or otherwise. Numis has given, and
not withdrawn, its consent to the inclusion in this announcement of the
references to its name and the advice it has given to Industrials in the form
and context in which they appear.

Eastdil Secured International Limited ("Eastdil Secured") which is authorised
and regulated in the United Kingdom by the FCA, is acting as the financial
adviser to Industrials and no one else in connection with the Acquisition and
the matters set out in this announcement and shall not be responsible to
anyone other than Industrials for providing the protections afforded to
clients of Eastdil Secured, nor for providing advice in connection with the
Acquisition or any matter referred to herein. Neither Eastdil Secured nor any
of its subsidiaries, affiliates or branches owes or accepts any duty,
liability or responsibility whatsoever (whether direct, indirect,
consequential, whether in contract, in tort, under statute or otherwise) to
any person who is not a client of Eastdil Secured in connection with this
announcement, any statement or other matter or arrangement referred to herein
or otherwise. Eastdil Secured has given, and not withdrawn, its consent to the
inclusion in this announcement of the references to its name and the advice it
has given to Industrials in the form and context in which they appear.

Java Capital Trustees and Sponsors Proprietary Limited ("Java Capital"), which
is authorised and regulated in South Africa by the JSE, which is licensed as a
securities exchange and is regulated by the Financial Sector Conduct Authority
and the Prudential Authority of South Africa, is acting as JSE sponsor
exclusively for Industrials and for no one else in connection with the matters
referred to in this announcement and will not be responsible to anyone other
than Industrials for providing the protections afforded to clients of Java
Capital, or for providing advice in relation to the contents of, matters
referred to in, this announcement or any matter referred to herein. Neither
Java Capital nor any of its subsidiaries, affiliates or branches owes or
accepts any duty, liability or responsibility whatsoever (whether direct,
indirect, consequential, whether in contract, in tort, under statute or
otherwise) to any person who is not a client of Java Capital in connection
with this announcement, any statement or other matter or arrangement referred
to herein or otherwise. Java Capital has given, and not withdrawn, its consent
to the inclusion in this announcement of the references to its name and the
advice it has given to Industrials in the form and context in which they
appear.

N.M. Rothschild & Sons Limited ("Rothschild & Co"), which is
authorised and regulated in the United Kingdom by the FCA, is acting for
Blackstone and Bidco and no one else in connection with the matters referred
to in this announcement. Rothschild & Co, its affiliates and their
respective directors, officers, employees and agents will not regard any other
person as their client, nor will they be responsible to anyone other than
Blackstone and Bidco for providing the protections afforded to the clients of
Rothschild & Co nor for providing advice in relation to the matters
referred to in this announcement.

RBC Europe Limited (trading as "RBC Capital Markets"), which is authorised by
the PRA and regulated by the FCA and the PRA in the United Kingdom, is acting
for Blackstone and Bidco and no one else in connection with the subject matter
of this announcement and will not be responsible to anyone other than
Blackstone and Bidco for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.

Neither the US Securities and Exchange Commission nor any US state securities
commission or regulatory authority has reviewed or approved this announcement
or the Scheme. Any representation to the contrary is a criminal offence in the
United States.

Overseas shareholders

The implications of the Scheme for Overseas Shareholders may be affected by
the laws of their relevant jurisdictions. Overseas Shareholders should inform
themselves about and observe any applicable legal requirements. It is the
responsibility of each Overseas Shareholder to satisfy himself as to the full
observance of the laws of the relevant jurisdiction in connection with the
Scheme, including the obtaining of any governmental, exchange control or other
consents which may be required, or the compliance with other necessary
formalities which are required to be observed and the payment of any issue,
transfer or other taxes due in such jurisdiction.

This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or subscribe for shares in any jurisdiction in
which such offer or solicitation is unlawful.

This announcement has been prepared for the purposes of complying with English
law, Guernsey law, the Takeover Code, requirements of the Panel, the London
Stock Exchange, the Listing Rules, the FCA, the South African Financial
Markets Act 19 of 2012 (as amended) and the JSE Listings Requirements and the
information disclosed may not be the same as that which would have been
disclosed if this announcement had been prepared in accordance with the laws
of any other jurisdiction.

Forward-looking statements

This announcement (including information incorporated by reference in this
announcement), oral statements made regarding the Acquisition, and other
information published by Bidco and Industrials contain certain statements,
beliefs or opinions, with respect to the financial condition, results of
operations and business of Bidco and Industrials which are, or may be deemed
to be, "forward-looking statements" and which are prospective in nature. These
forward-looking statements can be identified by the fact that they do not
relate only to historical or current facts. These statements are based on
assumptions and assessments made by Industrials and/or Bidco, in light of
their experience and perception of historical trends, current conditions,
future developments and other factors they believe appropriate. By their
nature, forward-looking statements involve risk and uncertainty, because they
relate to events and depend on circumstances that will occur in the future and
the factors described in the context of such forward-looking statements in
this announcement could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking statements.
Although it is believed that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given by
Industrials and Bidco that such expectations will prove to have been correct
and you are therefore cautioned not to place undue reliance on these
forward-looking statements which speak only as at the date of this
announcement. Often, but not always, forward-looking statements can be
identified by the use of forward-looking words such as "plans", "goals",
"hopes", "expects", "is expected", "envisages", "continue", "is subject to",
"budget", "scheduled", "estimates", "forecasts", "predicts", "intends",
"anticipates", "believes", "targets", "aims", "projects", "future-proofing" or
words or terms of similar substance or the negative of such words or terms, as
well as variations of such words and phrases or statements that certain
actions, events or results "may", "could", "should", "would", "might" or
"will" (or words of similar meaning)  be taken, occur or be achieved. Such
statements are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Forward-looking statements may
include statements relating to the following: (i) future capital expenditures,
expenses, revenues, earnings, synergies, economic performance, indebtedness,
financial condition, dividend policy, losses and future prospects; (ii)
business and management strategies and the expansion and growth of Bidco's or
any member of the Wider Bidco Group's, Industrials' or any member of the Wider
Industrials Group's operations; and (iii) the effects of global economic
conditions and governmental regulation on Bidco's, any member of the Wider
Bidco Group's, Industrials' or any member of the Wider Industrials Group's
business.

Such forward-looking statements involve known and unknown risks and
uncertainties that could significantly affect expected results and are based
on certain key assumptions. Many factors may cause the actual results,
performance or achievements of the Wider Bidco Group and/or the Wider
Industrials Group to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. These factors include changes in the global, political, economic,
business, competitive, market and regulatory forces, future exchange and
interest rates, changes in tax rates and future business combinations or
disposals. For a discussion of important factors which could cause actual
results to differ from forward-looking statements in relation to the
Industrials Group, refer to the Annual Report and the audited financial
statements of the Industrials Group for the financial year ended 31 March
2022. Each of Bidco and the Industrials Group, and each of their respective
members, directors, officers, employees, advisers and persons acting on their
behalf expressly disclaims any intention or obligation to update or revise any
forward-looking or other statements contained in this announcement, whether as
a result of new information, future events or otherwise, except as required by
applicable law.

No member of the Wider Industrials Group, nor the Wider Bidco Group, nor any
of their respective associates, directors, officers, employees or advisers
provides any representation, assurance or guarantee that the occurrence of the
events expressed or implied in any forward-looking statements in this
announcement will actually occur.

No member of the Wider Industrials Group, Blackstone, nor the Wider Bidco
Group, nor any of their respective associates, directors, officers, employees
or advisers assume any obligation and the Wider Industrials Group, Blackstone
and the Wider Bidco Group disclaim any intention or obligation to update or
correct the information contained in this announcement (whether as a result of
new information, future events or otherwise), except as required by applicable
law or regulation (including under the Listing Rules and the Disclosure
Guidance and Transparency Rules of the FCA).

Except as expressly provided in this announcement, no forward-looking or other
statements have been reviewed by the auditors of Industrials, Blackstone or
the Wider Bidco Group or their respective financial advisers. All subsequent
oral or written forward-looking statements attributable to Industrials or any
member of the Wider Bidco Group, or any of their respective associates,
directors, officers, employees or advisers, are expressly qualified in their
entirety by the cautionary statement above.

No profit forecast, estimate or quantified benefits statements

No statement in this announcement or incorporated by reference into this
announcement is intended to constitute a profit forecast, profit estimate or
quantified benefits statements for Industrials or Bidco for any period, nor
should any statement in this announcement or incorporated by reference into
this announcement be interpreted to mean that earnings or earnings per
Industrials Share for the current or future financial years would necessarily
match or exceed the historical published earnings or earnings per Industrials
Share.

Publication on website

A copy of this announcement (together with any document incorporated by
reference) and the documents required to be published pursuant to Rule 26 of
the Takeover Code will be made available, free of charge, subject to certain
restrictions relating to persons resident in Restricted Jurisdictions, on
Industrials' website at www.industrialsreit.com
(file:///C:/Users/GT8/AppData/Roaming/iManage/Work/Recent/2035198.000015%20-%20Project%20Christy/www.industrialsreit.com)
by no later than 12 pm London time (1 pm SAST) on the date following the
publication of this announcement. Save as expressly referred to in this
announcement, neither the contents of Industrials' website, Blackstone's
website nor the content of any other website accessible from hyperlinks on
such websites is incorporated into, or forms part of, this announcement.

Requesting hard copy documents

In accordance with Rule 30.3 of the Takeover Code, any person entitled to
receive a copy of documents, announcements and information relating to the
Acquisition is entitled to receive such documents (including information
incorporated by reference into such documents by reference to another source)
in hard copy form.

Industrials Shareholders recorded on the Guernsey Register may request hard
copies of this document by contacting the Guernsey Registrar at c/o The
Pavilions, Bridgwater Road, Bristol BS99 6ZY or on +44 (0) 370 707 4040
between 8.30 am and 5.30 pm (London time) Monday to Friday (public holidays
excepted). Calls to this number are charged at the applicable international
rate. Calls from a mobile device may incur network extras.

Industrials Shareholders recorded on the South African Register may request
hard copies of this document by contacting the South African Registrar at
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196, South Africa or at Private
Bag X9000, Saxonwold, 2132, South Africa or on +27 (11) 370 5000 between 9.00
am and 5.30 pm (SAST) Monday to Friday (public holidays in South Africa
excepted). Calls outside South Africa are charged at the applicable
international rate. Calls from a mobile device may incur network extras.

Such persons may also request that all future documents, announcements and
information to be sent to them in relation to the Acquisition should be in
hard copy form.

Electronic communications

Please be aware that addresses, electronic addresses and certain information
provided by Industrials Shareholders and other relevant persons for the
receipt of communications from Industrials may be provided to Bidco during the
Offer Period as required under Section 4 of Appendix 4 of the Takeover Code to
comply with Rule 2.11(c) of the Takeover Code.

Dealing disclosure requirements

Under Rule 8.3(a) of the Takeover Code, any person who is interested in 1 per
cent. or more of any class of relevant securities of an offeree company or of
any securities exchange offeror (being any offeror other than an offeror in
respect of which it has been announced that its offer is, or is likely to be,
solely in cash) must make an Opening Position Disclosure following the
commencement of the Offer Period and, if later, following the announcement in
which any securities exchange offeror is first identified.

An Opening Position Disclosure must contain details of the person's interests
and short positions in, and rights to subscribe for, any relevant securities
of each of (i) the offeree company and (ii) any securities exchange
offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) of
the Takeover Code applies must be made by no later than 3.30 pm (London time)
on the 10th business day following the commencement of the Offer Period and,
if appropriate, by no later than 3.30 pm (London time) on the 10th business
day following the announcement in which any securities exchange offeror is
first identified. Relevant persons who deal in the relevant securities of the
offeree company or of a securities exchange offeror prior to the deadline for
making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes,
interested in 1 per cent. or more of any class of relevant securities of the
offeree company or of any securities exchange offeror must make a Dealing
Disclosure if the person deals in any relevant securities of the offeree
company or of any securities exchange offeror. A Dealing Disclosure must
contain details of the dealing concerned and of the person's interests and
short positions in, and rights to subscribe for, any relevant securities of
each of (i) the offeree company and (ii) any securities exchange offeror, save
to the extent that these details have previously been disclosed under Rule 8
of the Takeover Code. A Dealing Disclosure by a person to whom Rule 8.3(b) of
the Takeover Code applies must be made by no later than 3.30 pm (London time)
on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire or control an interest in relevant
securities of an offeree company or a securities exchange offeror, they will
be deemed to be a single person for the purpose of Rule 8.3 of the Takeover
Code.

Opening Position Disclosures must also be made by the offeree company and by
any offeror and Dealing Disclosures must also be made by the offeree company,
by any offeror and by any persons acting in concert with any of them (see
Rules 8.1, 8.2 and 8.4 of the Takeover Code).

Details of the offeree and offeror companies in respect of whose relevant
securities Opening Position Disclosures and Dealing Disclosures must be made
can be found in the disclosure table on the Panel's website at
www.TheTakeoverPanel.org.uk, including details of the number of relevant
securities in issue, when the Offer Period commenced and when any offeror was
first identified. You should contact the Panel's Market Surveillance Unit on
+44 (0)20 7638 0129 if you are in any doubt as to whether you are required to
make an Opening Position Disclosure or a Dealing Disclosure.

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