The board of Urban Logistics REIT has said it is “minded to recommend” the proposed takeover by LondonMetric Property to its shareholders.
Urban Logistics REIT announced that it had received a preliminary, indicative proposal from LondonMetric Property regarding a possible takeover of the company on 13 April.
The board said it had now decided to engage in discussions with LondonMetric in relation to the proposed takeover and to allow the company to undertake a period of confirmatory due diligence.
Under the terms of the proposal, shareholders in Urban Logistics would be entitled to receive 0.5612 new LondonMetric shares and 42.8p in cash for each share they hold.
Based on LondonMetric’s closing share price of 182.1p on 11 April 2025, the proposal values each Urban Logistics share at 145p and Urban Logistics’ entire issued and to be issued share capital at approximately £674m.
In arriving at its decision, the board said LondonMetric’s proposal offered an attractive uplift in value, with “approximately 30% de-risked via the cash consideration, and meaningful accretion in earnings and dividends per share in respect of the share consideration”.
