Urban logistics shareholders approve acquisition by LondonMetric

Urban Logistics REIT PLC shareholders have overwhelmingly approved the acquisition by LondonMetric Property PLC, with approximately 98.92% voting in favor of the cash and share offer. The acquisition, implemented through a court-sanctioned scheme, is pending final court sanction on June 20 and is expected to be effective June 23, leading to the delisting of Urban Logistics shares. The combination of the two REITs will create a larger property group, though the financial terms of the deal were not disclosed.

Analysis

Urban Logistics REIT PLC shareholders have overwhelmingly approved its acquisition by LondonMetric Property PLC, with approximately 98.92% of voting shareholders endorsing the cash and share offer initially announced on May 9. This strong support, representing 49.52% of Urban Logistics' issued share capital, marks a significant milestone for the transaction, which is being implemented via a court-sanctioned scheme of arrangement. The deal is progressing towards a final court hearing scheduled for June 20, with an anticipated effective date of June 23. Consequently, Urban Logistics shares are expected to cease trading on the London Stock Exchange's Main Market on June 20, and their listing cancelled by June 24. The combination of these two real estate investment trusts, recommended by both boards, aims to create a larger, more substantial property group, although specific financial terms of the acquisition were not disclosed in the announcement. The overall sentiment surrounding this development is strongly positive, reflecting the definitive shareholder approval for the merger.

Key Decisions for Investors

• Urban Logistics REIT shareholders should acknowledge the near-certainty of the acquisition and the impending delisting of their shares around June 20-24, ensuring they understand the terms of the cash and share settlement from LondonMetric Property PLC.
• Investors in LondonMetric Property PLC (LMPL) should assess the strategic implications of integrating Urban Logistics and forming a larger property group, while the absence of disclosed financial terms for the acquisition and any external commentary concerning LMPL's valuation necessitate careful scrutiny of the deal's potential value accretion and the stock's current pricing.
• Market participants should view this transaction as indicative of ongoing consolidation within the UK REIT sector; it is prudent to monitor for further M&A activity and its potential impact on sector valuations and competitive dynamics.