LondonMetric proposes takeover of Urban Logistics
LondonMetric Property has made a preliminary takeover proposal for Urban Logistics REIT.
The target told shareholders in a stock exchange announcement that it is reviewing the proposal with its adviser, Lazard. Under takeover rules, LondonMetric now has until 5pm on 9 May to confirm it intends to make a firm offer.
In an interview with Estates Gazette last year, LondonMetric chief executive Andrew Jones said he sees it as “my job to buy companies”, adding that the mispricing of many of small-cap REITs means it is “beholden upon those who can afford it, and have got the right rating, to do something about it”.
LondonMetric Property has made a preliminary takeover proposal for Urban Logistics REIT.
The target told shareholders in a stock exchange announcement that it is reviewing the proposal with its adviser, Lazard. Under takeover rules, LondonMetric now has until 5pm on 9 May to confirm it intends to make a firm offer.
In an interview with Estates Gazette last year, LondonMetric chief executive Andrew Jones said he sees it as “my job to buy companies”, adding that the mispricing of many of small-cap REITs means it is “beholden upon those who can afford it, and have got the right rating, to do something about it”.
Last year the company merged with LXi REIT, buying the business for £1.9bn, and last month agreed the terms of a £44m takeover of Highcroft Investments.
Urban Logistics, with a market capitalisation of £574m and a portfolio most recently valued at £1.14bn, has come under pressure from activist investors in recent weeks to remove directors, with Achilles Investment Company claiming that “the board are too closely aligned with the investment manager”.
Urban Logistics said last month that it will call a general meeting that will offer “the opportunity to put before shareholders all of the relevant information regarding the true quality and potential of the Urban Logistics business, the merits of internalisation, the measures and governance the board has in place for maximising shareholder value, the track record of Robert Naylor and Sangita Shah and the board’s views on the intent of Achilles as well as the basic viability of the Achilles proposals as they relate to a real estate business”.
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