LondonMetric to acquire Urban Logistics in £698m deal

(Sharecast News) - 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