London & Stamford has tabled an offer to acquire the shares in Metric after the two UK REITS reached a final agreement on a merger. Under the deal, Metric shareholders will receive 0.94 ordinary shares in London & Stamford for every Metric share. This will result in Metric shareholders owning 25% of the enlarged group.
London & Stamford has tabled an offer to acquire the shares in Metric after the two UK REITS reached a final agreement on a merger. Under the deal, Metric shareholders will receive 0.94 ordinary shares in London & Stamford for every Metric share. This will result in Metric shareholders owning 25% of the enlarged group.
The merger - first signalled on 5 November - values each Metric share at 110 pence and the entire share capital at £209 mln (EUR 262 mln). The merger entails a premium of 18% on the closing price of Metric's share on 5 November and 24% on the six-month average price per Metric share.
London & Stamford has also announced it intends to return £100 mln of capital to shareholders of the enlarged group.
The companies said that the merger will create a top ten UK REIT with a liquid listing and broader access to capital and new debt markets.
London & Stamford invests in residential and commercial property, including office and industrial real estate assets, all of which are located in the UK. At 5 November 2012 London & Stamford had a market capitalisation of £635.1 mln and at end-September 2012 it had net assets of £609.8 mln and an EPRA NAV of 114 pence per share.
Metric was established to assemble a portfolio of freehold and long leasehold retail properties throughout the UK and Ireland. At 5 November it had a market capitalisation of £176.7 mln and net assets of £200.1 mln. At end-September 2012 it had an EPRA NAV of 107 pence per share.
