Cromwell's Walks Away from RDI REIT
Earlier in March 2019, Cromwell Property Group announced that it had approached the board of RDI regarding a potential transaction however Cromwell have decided now not to pursue the proposal any further following a rejection from RDI.
RDI Board considered the earlier proposal undervalued RDI and its prospects and, as a result, decided not to support the proposal or a further period of due diligence.
Cromwell launched the bid last month in a cash and scrip offer thought to be worth €1.85 per share for RDI REIT. The offer price represented a 43% premium to the last close before the bid became public in March.
RDI is an established UK REIT invested in a diversified portfolio in the United Kingdom and Germany independently valued at £1.62bn. Their European portfolio consists of three shopping centres as well as a number of retail parks and DIY assets throughout Germany.