British landlord LondonMetric Property will acquire London-based real estate investment trust (REIT) LXI in a deal valued at 1.9 billion pounds ($2.43 billion), the companies said.
Under the terms of the deal, each LXI shareholder will get 0.55 new LondonMetric shares for every share held. This represents a premium of about 9% to LXI’s closing price before the offer period began in December.
LXI directors intend to recommend unanimously that shareholders vote in favour of the deal, which is aimed at creating a new major REIT focused on greater scale and sectors with high barriers to entry.
LondonMetric, also a REIT, mainly owns logistic platforms alongside a grocery-led long-income portfolio, while LXI invests in varied sectors, including healthcare, budget hotels, theme parks, food stores, industrial, pubs, and education.
Source: Reuters.com