14th Apr 2025 16:43
(Alliance News) - Urban Logistics REIT PLC on Monday confirmed the terms of an offer from LondonMetric Property PLC, following a preliminary takeover proposal last week.
Urban Logistics is a UK-focused logistics real estate investment trust, while LondonMetric is a FTSE100-listed real estate investment trust.
LondonMetric has made an offer for 0.5612 new LondonMetric shares plus 42.8 pence in cash per Urban Logistics share.
In addition, Urban Logistics shareholders would be entitled to retain the 4.35p per share dividend expected for the second half of its financial year that ended March 31.
Based on LondonMetric's closing share price of 182.1p on Friday, the proposal values each Urban Logistics share at 145.0p and its entire share capital at around GBP674 million. This would be an around 17% premium to Urban Logistics' closing price of 123.4p on Thursday.
Shares in Urban Logistics were up 8.3% at 138.60p each in London on Monday afternoon, giving it a market capitalisation of GBP644.6 million.
LondonMetric shares were up 1.5% at 184.81p, giving it a market capitalisation of GBP3.80 billion.
If the takeover was to be completed, Urban Logistics shareholders would hold around 11% of the combined group's issued share capital.
Urban Logistics intends to engage in talks with LondonMetric in relation to the proposed terms, and to allow LondonMetric to undertake a period of confirmatory due diligence.
Urban Logistics considers that a takeover by LondonMetric would include an "attractive uplift in value", as well as a "meaningful accretion in earnings and dividends per share in respect of the share consideration".
Its shareholders would have "continued participation in the logistics sector", which Urban Logistics notes represents 54% of the combined group's GBP7.3 billion portfolio, with "increased scale and diversification" and "greater cost efficiency under LondonMetric's internal management team".
Under the UK Takeover Code, LondonMetric has until May 9 to either announce a firm intention to make an offer or confirm it does not plan to proceed unless an extension is granted by the takeover panel.
"There can be no certainty that any offer for Urban Logistics will be made," Urban Logistics stressed on Monday. "A further announcement will be made in due course. In the meantime, Urban Logistics shareholders are advised to take no action."
By Emily Parsons, Alliance News reporter
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