UK's London & Stamford, Metric Property discuss merger deal.
M2 EQUITYBITES-November 6, 2012-UK's London & Stamford, Metric Property discuss merger deal(C)2012 M2 COMMUNICATIONS http://www.m2.com
6 November 2012 - British property investors London & Stamford Property Plc (LON:LSP) and Metric Property Investments Plc (LON:METP) announced today they are holding advanced talks regarding a potential business combination.
The parties are discussing a merger following which London & Stamford's stockholders will own a controlling stake of about 75% in the combined company, leaving the rest for the shareholders of Metric. The negotiated terms currently call for London & Stamford to exchange 0.94 new ordinary shares for every one Metric ordinary unit.
The firms have also agreed in principle that London & Stamford's current head Patrick Vaughan would become the executive chairman of the enlarged entity, while Metric's chief executive Andrew Jones would continue to act as such.
Raymond Mould, the current chairman of London & Stamford who intends to retire upon completion of the planned tie-up, stated that the proposed transaction has the potential to create significant stockholder value for all parties. In turn, Metric's CEO said that the planned merger would form a larger real estate investment trust (REIT) with scale, diversity and liquidity.
The companies noted there was no certainty that a transaction would be carried out at all. London & Stamford now has time until 4 December 2012 to announce a firm intention to make an offer for Metric.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Nov 6, 2012|
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