LXi REIT agrees to £1.9bn LondonMetric takeover deal
The boards said the combined group will have EPRA net tangible assets of about £4.1bn, becoming the fourth largest UK REIT.
Following weeks of discussions, the boards of both companies confirmed in a stock exchange notice today (11 January) that for each LXi share held, shareholders will receive 0.55 new LondonMetric shares as part of a scheme of arrangement.
Based on the closing price per LXi share on 15 December of 99.5p, the offer represents a premium of about 9%, and a 13% premium to the volume weighted average closing price per LXi share for the one-month period to 15 December of 95.7p.
LondonMetric Property in talks to acquire LXi REIT
Once the merger is complete, existing LondonMetric shareholders will hold about 54% and LXi shareholders will hold about 46% of the enlarged issued share capital of LondonMetric.
The boards said the combined group will have EPRA net tangible assets of about £4.1bn, becoming the fourth largest UK REIT and providing «better» access to capital through greater scale, lower cost base and increasing share liquidity.
«The board of LXi would like to thank the LXi REIT Advisors team for the important contribution they have made to the company's success,» said LXi chair Cyrus Ardalan.
«The merger will position the combined group for continued growth and outperformance and the delivery of reliable, sustainable and progressive dividends through the cycle, thereby underpinning superior total shareholder returns.»
CT Property trust completes sale to LondonMetric Property
Andrew Jones, chief executive of LondonMetric, said the transaction underscores the firm's ambitions to leverage its management platform and access «exciting new opportunities» across the UK real estate market.
«Our team is
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