LondonMetric Proposes Acquisition of Urban Logistics REIT

Published 14/04/2025, 15:28
LondonMetric Proposes Acquisition of Urban Logistics REIT

LONDON - Urban Logistics REIT plc, a company specializing in the provision of industrial and logistics properties, has received a revised proposal from LondonMetric Property plc for the acquisition of all its issued and to be issued share capital. The possible offer, announced on Monday, consists of both cash and equity, with Urban Logistics shareholders receiving 0.5612 new LondonMetric shares plus 42.8 pence in cash for each Urban Logistics share they hold.

Additionally, Urban Logistics shareholders are expected to retain the right to the second half of the financial year’s dividend, projected at 4.35 pence per share, payable in July 2025. Should the acquisition proceed, Urban Logistics shareholders would own approximately 11.3% of the combined entity’s issued share capital.

The proposal by LondonMetric values each Urban Logistics share at 145.0 pence, based on LondonMetric’s closing share price on April 11, 2025. This valuation represents a premium over Urban Logistics’ recent share prices and implies an EPRA NTA discount of around 3%. The total value of the deal would be approximately £674 million.

Urban Logistics’ board, after reviewing the terms with advisers, has indicated a willingness to recommend the offer to its shareholders, subject to agreement on other terms. The company has thus entered into discussions with LondonMetric and allowed a period of confirmatory due diligence.

The board believes the proposal offers Urban Logistics shareholders an attractive uplift in value, with the cash component providing a measure of risk mitigation. Shareholders would continue to have exposure to the logistics sector, which forms a significant part of the combined group’s portfolio, valued at £7.3 billion. The merger would also offer increased scale, diversification, and cost efficiencies, as well as enhanced liquidity and access to capital markets.

The announcement of the possible offer has led Urban Logistics to pause its internal management internalization process and to consider postponing a requisitioned general meeting.

LondonMetric has until 5:00 pm London time on May 9, 2025, to either announce a firm intention to make an offer in accordance with the City Code on Takeovers and Mergers or to declare that it does not intend to make an offer. The information in this article is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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