The Irongate Group (ASX: IAP) share price is in the red on Wednesday after the company rejected a takeover offer for the third time.
360 Capital Group Ltd (ASX: TGP) and 360 Capital REIT (ASX: TOT) – together, 360 Capital – posed its most recent takeover bid of $1.72 in cash per share in mid-December.
It previously posed bids of $1.65 and $1.70, discounting a 4.5 cent dividend paid to Irongate shareholders in early December.
The market appears disappointed by today's rejection. At the time of writing, the Irongate share price has dropped 1.46% to trade at $1.69.
Let's take a look at what's driving the real estate investment trust's (REIT) share price down today.
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Irongate share price slips on another rejected takeover bid
The Irongate share price is slumping after the trust rejected yet another takeover bid, stating it didn't "reflect [its] underlying value".
It said the bid didn't appreciate its office and industrial real estate portfolio, its portfolio's value-add upside potential, and the potential of its third-party funds management business.
Finally, the REIT commented if it believed a proposal did reflect maximum value for its shareholders, it would consider it.
Assumedly, that statement lands the ball squarely back in 360 Capital's court.
Each bid so far has been rejected for the same reason. Additionally, according to Irongate, each bid didn't come with any changed conditions.
Irongate didn't announce it had received the second bid to the market as it was immediately rejected. The wannabe acquiree criticised that decision at the time. And perhaps investors are responding now, considering the direction of Irongate shares today.
In response to its second rejection, 360 Capital commented:
360 Capital is disappointed the IAP board has again chosen not to engage with 360 Capital despite the Improved Indicative Proposal representing an attractive premium across a number of valuation metrics…
On top of that, the company's managing director Tony Pitt noted:
360 Capital remains committed to working with the board and management of Irongate Group for a period of time, but will remain disciplined in its investment approach to assets, particularly given current uncertainties in this rising interest rate environment.
Since 360 Capital pitched its first bid, the Irongate share price has gained 12%. It is also currently nearly 5% higher than it was this time last month.
