The board of Picton Property Income (LON:PCTN) said it was ‘minded to recommend’ the raised offer from LondonMetric (LON:LMP) and Schroder Real Estate (LON:SREI). The two firms made an initial offer on 12 May after Picton initiated a strategic review to maximise value for shareholders.
Raised offer
Under the revised terms of the offer, Picton investors will receive shares to the value of 77p each, a 6.8% premium to last night’s close. The offer values Picton at £397 million, with 46% represented by LondonMetric shares and 54% represented by SREIT shares.
The board cited an implied earnings accretion of 39.4% using FY results for Picton, LondonMetric and SREIT, up from 37.7% previously. It also highlighted a ‘very material, immediate increase’ of 47.4% in dividend income as justification for recommending the offer.
SEGRO rejects Prologis proposal
Meanwhile, warehouse and data centre owner SEGRO (LON:SGRO) this week issued a stern rebuttal to US firm Prologis (NYSE:PLD). SEGRO chairman Andy Harrison accused Prologis of trying to buy SEGRO on the cheap.
‘The board takes its fiduciary duties very seriously, but the value of Prologis’s current proposal does not reflect any basis for further engagement’, said Harrison. The rejected proposal ‘fails to reflect the quality, scarcity and growth embedded in our business and is an inadequate, opportunistic and one-sided alternative which would dilute our shareholders’ exposure to our unique and irreplicable portfolio and outstanding prospects’, added Harrison.
Read the press release here: https://www.picton.co.uk/investors/
