Tritax Big Box and Abrdn-managed UK Commercial Property REIT (UKCM) have agreed on the terms of their proposed merger.
Last month, Tritax Big Box proposed to acquire UKCM to create a business with a combined portfolio of 拢6.3bn (鈧�7.4bn) assets.
The deal valued UKCM鈥檚 share price at 71.1p with a market capitalisation of around 拢924m. Tritax Big Box which is also listed on the London Stock Exchange has a market capitalisation of around 拢3bn.
At the time, Tritax said the 鈥減ossible offer鈥� represented a 10.8% premium to UKCM鈥檚 shares鈥� last closing price of 64.2p.
The combined group鈥檚 portfolio value of 拢6.3bn, comprising Tritax Big鈥檚 拢5bn portfolio and UKCM鈥檚 拢1.3bn portfolio, will have assets generating over 拢290m of rental income per annum.
In the latest development, the companies said they have reached an agreement on the terms of a recommended all-share combination of Tritax and UKCM whereby Tritax acquires all the shares of UKCM.
The deal involves UKCM shareholders receiving 0.444 new Tritax shares for each UKCM share in a transaction that will give UKCM shareholders 23.3% and existing Tritax shareholders 76.7% of the combined group.
UKCM said its recommending directors consider the terms of the combination to be 鈥渇air and reasonable鈥� and as a result intend to recommend that shareholders vote in favour of of the transaction at its general meeting.
Likewise, Tritax directors 鈥渋ntend unanimously to recommend鈥� that shareholders vote in favour of all of the resolutions to be proposed at a general meeting.
Last month, shareholders Phoenix Life and Investec Wealth & Investment UK, holding 43.4% and 13.1% stakes, respectively, in UKCM, stated their intentions to accept the proposal by voting in favour of the offer if implemented by way of a scheme of arrangement.
Tritax said it has so far received irrevocable undertakings and a letter of intent representing, in aggregate, approximately 56.5% of the issued ordinary share capital of UKCM.
To read the latest 麻豆映画 Real Assets magazine click here.
