LondonMetric Property (LSE:LMP) and Schroder Real Estate Investment Trust have revised their proposed takeover terms for Picton Property Income, with the Picton board confirming it backs the updated offer following the conclusion of a formal sale process.
The revised proposal carries pro-forma earnings accretion of 39.4%, calculated using full-year results for the year ended 31 March for all three parties, up from 37.7% under the original possible offer announcement.
Picton, a London-listed property income REIT with a portfolio valued at £701 million as at 31 March, had been running a strategic review and formal sale process that considered several alternatives before the board aligned behind the consortium's revised terms.
No firm offer has been made and the consortium's ability to proceed under Rule 2.7 of the City Code on Takeovers and Mergers remains conditional on three pre-conditions: completion of remaining confirmatory due diligence, receipt of consents and waivers from Picton's lenders, and finalisation of definitive transaction documentation.
If a firm offer is made, it is expected to be implemented by way of a Court-sanctioned scheme of arrangement under Guernsey company law, though the consortium retains the right to switch to a contractual offer.
