LondonMetric Property (LMP)

[Gengulphus]

Yesterday, LondonMetric Property announced a takeover bid for A&J Mucklow. I've posted about it on the HYP Practical board, in viewtopic.php?f=15&t=17819, as what I had to say included a fair amount of HYP-specific stuff and nothing specific to any other type of strategy, and also because this board's one-thread-per-company structure makes it awkward to decide which company to post it for. But it does also include quite a bit just summarising the main points of the offer (as I see them, of course), so they are in my view worth bringing up with regard to both companies on this board.

Gengulphus

[idpickering]

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

https://www.investegate.co.uk/announcem ... lc/7973274

I hold LXI.

Ian.

[idpickering]

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

https://www.investegate.co.uk/announcem ... it/7973275

Ian.

[GrahamPlatt]

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

https://www.investegate.co.uk/announcem ... it/7973275

Ian.

Seems to be in respect of LXI REIT though, nothing to do with Mucklow.

[idpickering]

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

https://www.investegate.co.uk/announcem ... it/7973275

Ian.

Seems to be in respect of LXI REIT though, nothing to do with Mucklow.

The RNS is in respect of an offer to buy LXI and merge LondonMetric and LXI. Not sure why you mentioned Mucklow?

Ian.

[monabri]

Seems to be in respect of LXI REIT though, nothing to do with Mucklow.

The RNS is in respect of an offer to buy LXI and merge LondonMetric and LXI. Not sure why you mentioned Mucklow?

Ian.

See the first post by G.

[idpickering]

See the first post by G.

I see, thanks. I miss G's input on these boards. RIP G.

Ian.

[Dod101]

The RNS is in respect of an offer to buy LXI and merge LondonMetric and LXI. Not sure why you mentioned Mucklow?

Ian.

See the first post by G.

That is what comes with these very long threads. I held Mucklow and have been sorry every since that they were taken over by LondonMetric.

Dod

[idpickering]

Additional Listing

On 23 November 2023, LondonMetric Property Plc ("Company") declared a second quarterly interim dividend of 2.4 pence per Ordinary Share ("Dividend") payable on 11 January 2024 to Shareholders on the register of members at the close of business on 1 December 2023.

The Company confirms that, in accordance with the terms of the scrip dividend scheme ("Scheme"), 3,963,146 ordinary shares of 10 pence each in the Company ("Shares") are to be issued in relation to the Dividend.

Application will be made to the Financial Conduct Authority for the Shares to be admitted to the Official List and to the London Stock Exchange ("LSE") for the Shares to be admitted to trading on the LSE ("Admission"). Admission is expected to occur on 11 January 2024 and the Shares will rank pari passu with existing issued Shares.

https://www.investegate.co.uk/announcem ... ng/7975189

Ian (No holding).

[idpickering]

LONDONMETRIC PROPERTY PLC LONDONMETRIC COMPLETES £21 MILLION LOGISTICS ACQUISITION AND £7 MILLION OFFICE SALE

LondonMetric Property Plc ("LondonMetric") announces that it has completed the acquisition of a long-let distribution warehouse in Doncaster for £21.2 million, reflecting a NIY of 6.3%.

The 264,000 sq ft regional logistics warehouse is let to Next for a further 13 years at a rent of £1.42 million p.a., which equates to a low £5.37 psf. The lease benefits from annual fixed rental uplifts of 2.5% which will increase the purchase NIY to 7.1% within three years.

Separately, LondonMetric has sold an 18,000 sq ft office investment in Chiswick for £7.4 million. The multi-let office is 59% occupied with a WAULT of 1.5 years and was acquired as part of the A&J Mucklow takeover in 2019.

https://www.investegate.co.uk/announcem ... on/7977951

Ian (No holding).

[idpickering]

RECOMMENDED ALL-SHARE MERGER OF LXI REIT PLC ("LXI") AND LONDONMETRIC PROPERTY PLC ("LONDONMETRIC")

Summary

The boards of directors of LondonMetric and LXi are pleased to announce that they have reached agreement on the terms of a recommended all-share merger pursuant to which LondonMetric will acquire the entire issued and to be issued ordinary share capital of LXi (the "Merger" forming the "Combined Group"). It is intended that the Merger will be effected by means of a scheme of arrangement under Part 26 of the Companies Act.

Under the terms of the Merger, each LXi Shareholder will be entitled to receive:

for each LXi Share held: 0.55 New LondonMetric Shares (the "Exchange Ratio") (1)

On the basis of the Undisturbed Closing Price per LondonMetric Share of 197.4 pence on 15 December 2023 (being the last Business Day before the Offer Period began), the Merger values the entire issued and to be issued ordinary share capital of LXi at approximately £1.9 billion and:

· represents a premium of approximately 9 per cent. to the Undisturbed Closing Price per LXi Share of 99.5 pence;

· represents a premium of approximately 13 per cent. to the volume weighted average Closing Price per LXi Share for the one-month period ended on 15 December 2023 of 95.7 pence; and

· implies an NTA discount of 4 per cent. based on each of the LondonMetric and LXi Rolled-Forward Unaudited EPRA NTAs(2).

Following completion of the Merger, existing LondonMetric Shareholders will hold approximately 54 per cent. and LXi Shareholders will hold approximately 46 per cent. of the enlarged issued share capital of LondonMetric.

https://www.investegate.co.uk/announcem ... nt/7984599

Ian (I hold LXI).

[PrefInvestor]

Personally I’m not impressed with this merger deal for LXI shares. For each LXI share held you get 0.55 of an LMP share, at todays (11/1/2024) price of 188.x I make an LXI share worth 103.4p on that basis, which is just about where they have been trading since the start of 2024 – so little or no uplift from the deal therefore.

Also LMPs dividends at todays price of 188.x represent a ~5.1% dividend yield compared to ~6.5% previously from LXI.

Now just maybe on the pricing from that was the deal being priced in already, but from where we are it offers no incentive to hold it seems to me.
Also I’d have been happier is LXI management were running the show. LMPs share price has done nothing much for the whole of 2022 having previously fallen from ~290p. NTA in last results (Sept 2023) was ~199.6p so not trading at a large discount apparently.

So I’ve just sold all my LXI and topped up on EBOX & SUPR which are both down today and which have much higher yields and a bigger recovery potential given their current level of discount.

Just a personal opinion DYOR etc.

ATB

Pref

[idpickering]

Personally I’m not impressed with this merger deal for LXI shares. For each LXI share held you get 0.55 of an LMP share, at todays (11/1/2024) price of 188.x I make an LXI share worth 103.4p on that basis, which is just about where they have been trading since the start of 2024 – so little or no uplift from the deal therefore.

Also LMPs dividends at todays price of 188.x represent a ~5.1% dividend yield compared to ~6.5% previously from LXI.

Now just maybe on the pricing from that was the deal being priced in already, but from where we are it offers no incentive to hold it seems to me.
Also I’d have been happier is LXI management were running the show. LMPs share price has done nothing much for the whole of 2022 having previously fallen from ~290p. NTA in last results (Sept 2023) was ~199.6p so not trading at a large discount apparently.

So I’ve just sold all my LXI and topped up on EBOX & SUPR which are both down today and which have much higher yields and a bigger recovery potential given their current level of discount.

Just a personal opinion DYOR etc.

ATB

Pref

Thanks for your offering. I feel your pain. I'd rather stick with just LXI to be honest. Hmm?

FYI, SUPR are ex div today.

Ian.

[PrefInvestor]

Yes SUPR XD today, that’s a good day to buy in my book - im not bothered about missing a dividend on something that pays quarterly and I get more shares for the same price. I was planning to buy SUPR today anyway, but just used my LXI funds to do so.

ATB

Pref

[idpickering]

Yes SUPR XD today, that’s a good day to buy in my book - im not bothered about missing a dividend on something that pays quarterly and I get more shares for the same price. I was planning to buy SUPR today anyway, but just used my LXI funds to do so.

ATB

Pref

Thanks for coming back on this. My current thinking about the merger is to do nothing, but we'll see?

All the best,

Ian.

[PrefInvestor]

Just spotted this article about the proposed merger on the AIC:-

https://www.theaic.co.uk/aic/news/indus ... rger-terms

Still think it’s a poor deal for LXI shareholders myself. Maybe they will vote it down as a 75% majority is required ?. Not that I care much as I’ve sold all mine now….

ATB

Pref

[idpickering]

Just spotted this article about the proposed merger on the AIC:-

https://www.theaic.co.uk/aic/news/indus ... rger-terms

Still think it’s a poor deal for LXI shareholders myself. Maybe they will vote it down as a 75% majority is required ?. Not that I care much as I’ve sold all mine now….

ATB

Pref

An interesting read, thanks. To be honest, when/if I get to vote for this deal, my vote will be no. As I said further up I'd rather just stick with LXI.

Ian.

[idpickering]

Notice of Results

LondonMetric Property Plc will announce its full year results for the year ending 31 March 2024 on Tuesday 4 June 2024.

An in-person presentation for analysts will be held at 09.00am on the day of the results. There will also be a live webcast available at http://www.londonmetric.com/investors and https://brrmedia.news/LMP_FY. An on-demand recording of the presentation will be available afterwards at the same links.

https://www.investegate.co.uk/announcem ... ts/8012364

Ian ( No holding).

[idpickering]

RECOMMENDED ALL-SHARE MERGER OF LXI REIT PLC ("LXI") AND LONDONMETRIC PROPERTY PLC ("LONDONMETRIC")

On 11 January 2024 the boards of LondonMetric and LXi made an announcement pursuant to Rule 2.7 of the Takeover Code (the "Announcement") of a recommended all-share merger pursuant to which LondonMetric will acquire the entire issued and to be issued ordinary share capital of LXi (the "Merger"), intended to be implemented by means of a scheme of arrangement under Part 26 of the Companies Act (the "Scheme").

As set out in section 6 and Appendix 3 of the Announcement, LondonMetric had received a letter of intent from Artemis to vote in favour of the Scheme at the Court Meeting and to vote in favour of the LXi Resolution to be proposed at the LXi General Meeting, in respect of a total of 128,066,087 LXi Shares, representing approximately 7.46 per cent of the issued ordinary share capital of LXi as at 10 January 2024, being the Latest Practicable Date prior to the Announcement (the "Artemis Letter of Intent").

https://www.investegate.co.uk/announcem ... de/8022054

Ian (I hold LXI).

[idpickering]

Publication of Combined Circular and Prospectus and Notice of General Meeting

Further to the announcement on 11 January 2024 in relation to the proposed recommended all-share merger of LondonMetric and LXi REIT Plc ("LXi") (the "Rule 2.7 Announcement"), LondonMetric announces that the combined circular and prospectus (the "Combined Circular and Prospectus") was approved by the Financial Conduct Authority earlier today.

The Combined Circular and Prospectus, incorporating the Notice of General Meeting to be held at CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London EC4N 6AF at 2.30 p.m. on 27 February 2024 is expected to be posted to LondonMetric Shareholders shortly.

https://www.investegate.co.uk/announcem ... us/8024850

Ian.