LondonMetric Property is buying another London-listed company A&J Mucklow Group to become a 拢2.3bn (鈧�2.6bn) logistics group.
The recommended offer allows Mucklow shareholders to receive 2.19 new LondonMetric shares and 204.5p in cash for each Mucklow ordinary share, valuing Mucklow at 拢414.7m.
The offer represents a 19.7% premium to Mucklow shares鈥� last closing price of 547.5p.
UK real estate investment trust LondonMetric said merging with West Midlands focussed Mucklow will provide it with access to a 鈥渟ubstantial portfolio of distribution and industrial assets鈥� materially expanding LondonMetric鈥檚 footprint without incurring normal purchaser costs that would have arisen on a typical asset acquisition.
The combination will add 3.2m sqft of distribution space to LondonMetric鈥檚 portfolio and would increase LondonMetric鈥檚 end-to-end logistics platform to 拢1.65bn and its total portfolio to approximately 拢2.3bn.
The deal will lift LondonMetric鈥檚 urban logistics exposure from 拢0.5bn to 拢0.82bn, it said.
Patrick Vaughan, chairman of LondonMetric, said the combination of Mucklow鈥檚 assets, of which approximately 70% is in distribution and industrial property, is consistent with LondonMetric鈥檚 strategy of increasing its urban logistics exposure.
鈥淭here will be work to do, but we are excited by the reversionary and asset management potential of their assets which will underpin and further support our progressive dividend policy.鈥�
Rupert Mucklow, chairman and CEO of Mucklow, said: 鈥淟ondonMetric has a complementary portfolio which mirrors Mucklow鈥檚 focus on high-quality income-producing properties and the LondonMetric management team has the necessary expertise to build on the success that Mucklow has achieved over the 57 years it has been a listed company.
鈥淭he combination recognises the value of the Mucklow portfolio and resolves the uncertainty around succession planning.鈥�
