British diversified real estate investment trust LondonMetric Property PLC offered to acquire the entire issued and to be issued ordinary share capital of fellow REIT A & J Mucklow Group PLC by way of a scheme arrangement.
LondonMetric offered a combination of 2.19 new LondonMetric shares and 204.5 pence per share in cash in exchange for each Mucklow ordinary share, valuing the target company at approximately £414.7 million, or 655.2 pence per share.
The offer represents a premium of 19.7% to Mucklow's 547.5 pence-per-share closing price on May 22 and a premium of 28% on the company's three-month volume weighted average price per share of 512.0 pence.
Following the completion of the scheme, LondonMetric and Mucklow shareholders will respectively hold roughly 83.5% and 16.5% of the combined entity, which will have gross property assets, including shares in joint ventures, of £2.3 billion, according to a release.
The Mucklow group directors plan to unanimously recommend that shareholders vote in favor of the scheme at a company meeting.
Peel Hunt is acting as sponsor for LondonMetric, as well as a joint financial adviser and joint broker to the REIT along with J.P. Morgan Cazenove.
Numis is serving as financial adviser to Mucklow, while Stifel Nicolaus Europe Ltd. and Arden Partners PLC are acting as the company's joint brokers.