TORONTO - Shares in C2C Industrial Properties Inc. (TSXV:CCH) soared almost 30 per cent Tuesday following the announcement of a takeover bid by Dundee Industrial REIT (TSX:DIR.UN) valued at $226 million.
Dundee said it was offering 0.4485 of a Dundee unit for each C2C share, which represents a value of $4.85 per C2C share based on Dundee's volume-weighed average trading price in the 10 days ended March 18.
C2C's holdings include 2.5 million square feet of gross leasable area located primarily in Halifax, Edmonton, the Greater Toronto Area and the Greater Montreal Area.
"The C2C portfolio is an ideal strategic fit within our current portfolio and meets our strategic objectives of investing in Canada's largest industrial markets, growing cash flows for our unitholders and making our company safer by further reducing our exposure to any one tenant, region or industry sector," Dundee president and CEO Scott Hayes said.
Dundee Industrial owns 158 primarily light industrial properties comprising approximately 11.4 million square feet of gross leasable area in key industrial markets across Canada.
C2C shares were up $1.05, or 28.38 per cent, at $4.75 in trading on the TSX Venture Exchange, while Dundee Industrial Real Estate Investment Trust units fell 20 cents, or 1.82 per cent, to $10.76 Tuesday morning.