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UPDATE 1-UK developer London & Stamford makes offer for Metric
November 9, 2012 / 9:01 AM / 5 years ago

UPDATE 1-UK developer London & Stamford makes offer for Metric

LONDON, Nov 9 (Reuters) - UK property investor London & Stamford made a 209 million pound ($334 million) takeover offer for developer Metric Property Investments on Friday.

The new company will be called LondonMetric Property Plc and will remain listed on the London stock exchange, the two firms said. London & Stamford is offering 0.94 shares for every Metric share.

The offer, which came three days after the two companies said they were in advanced discussions to merge, means London & Stamford shareholders would own 75 percent of the enlarged company while Metric shareholders would own the remainder.

“The proposed merger will create a larger real estate investment trust with scale, diversity and liquidity and brings together deep real estate knowledge, financial resources and management skills,” Metric’s chief executive Andrew Jones said.

London & Stamford owns and develops offices and luxury homes in London as well as warehouses across Britain. Last month, it sold its stake in the Meadowhall shopping centre in Sheffield for 750 million pounds to Norway’s sovereign wealth fund. Metric owns supermarkets and retail parks in Britain.

London & Stamford said its EPRA (European Public Real Estate Association) net asset value per share for the six months to end-September fell to 114 pence from 120.6 pence in the same period last year and that it had purchasing power of 1 billion pounds following the Meadowhall sale.

At 0839 GMT, shares in Metric were up 1.75 percent to 102 pence while London & Stamford shares were unchanged at 110.3 pence, outperforming the broader index of UK property stocks which was down 0.43 percent.

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