LondonMetric to acquire Urban Logistics in £698m deal
Property company LondonMetric revealed on Friday that it has reached agreement on the terms of a recommended cash and share offer for Urban Logistics REIT.
LondonMetric said the deal was priced at 150.3p per Urban Logistics share, valuing the REIT at a total of £698.9m.
Urban Logistics shareholders will receive 0.5612 new LondonMetric shares, as well as 42.8p in cash for each share they own, and will hold a roughly 11% stake in the combined group. It also noted that Urban Logistics shareholders would receive a final interim dividend of 4.35p per share.
Following the acquisition, the FTSE 100-listed group will have a £7.3bn portfolio focused on logistics, convenience, healthcare, entertainment, and leisure.
LondonMetric chief executive Andrew Jones said: "This is an excellent transaction that grows our urban logistics platform and supports our triple net strategy.
"We have a demonstrable track record of successfully executing on M&A and we expect the transaction will deliver substantial synergies, cost savings and accelerated earnings growth."
As of 0900 BST, LondonMetric shares were down 0.21% at 191.10p.
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.