Source: Sharecast
Under the terms of the indicative all-share offer, for each share they hold, Picton shareholders will receive 0.190 LondonMetric shares and 0.881 shares in Schroder Real Estate Investment Trust, the other member of the consortium.
A firm final offer is based on various conditions, including the satisfactory completion of due diligence and certain consents and waivers. Should those be met, once the deal completes, Picton shareholders will hold around 4% of the enlarged share capital of LondonMetric and 48.2% of Schroder Reit.
LondonMetric said the deal would continue to give Picton shareholders exposure to its "good quality" portfolio while also "addressing the challenges" the Reit was facing as an independent company.
Picton, which launched in 2005 and became a Reit in 2018, owns a mix of commercial UK property including industrial, offices and retail. However, in January, it kick-started a formal sale process, arguing that despite solid returns, its shares were trading at a material discount, "which doesn’t fully reflect the underlying quality and performance of the business".
It also noted at the time that the current environment was "significantly" constraining the ability of listed companies in the sector to raise new equity.
The board of Picton confirmed it had unanimously recommended the proposed takeover to investors.
As at 0945 BST, shares in Picton had fallen 5% at 69.6p, while LondonMetric was 2% lower at 183.8p and Schroder Reit was off 3% at 46.85p.
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