LondonMetric Property (LSE:LMP) and Schroder Real Estate Investment Trust have reached agreement in principle on a non‑binding, indicative, all‑share proposed offer for Picton Property Income, valuing the target at Picton at £403.4m.
Pitched at 0.190 LondonMetric shares and 0.881 SREIT shares per Picton share implies some 78.2p per Picton share, a calculated premium of around 7% to the 11 May closing price of 73.1p.
It would represent a c.46:54 split between LondonMetric and SREIT reflecting an intended split of Picton's gross asset value.
The Picton board said it would be minded unanimously to recommend the Proposed Offer subject to satisfactory reciprocal due diligence, agreement of final documentation and other conditions, and the consortium has secured a letter of intent from TR Property Investment Trust covering 58.43m Picton shares (c.11.4%).
Meanwhile, the announcement noted that the proposal remains indicative and subject to confirmatory due diligence, lender consents, board approvals and other pre‑conditions.
