LONDON: LondonMetric Property (LSE: LMP) announced Thursday its agreement to acquire Highcroft Investments PLC (TISE: HCFT) through an all-share offer. The acquisition will be effected via a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
Under the terms of the deal, Highcroft shareholders will receive 4.65 new LondonMetric shares for each Highcroft share they hold, valuing Highcroft shares at 842.1 pence based on LondonMetric’s closing price of 181.1 pence on March 26, 2025. This represents a 40.4% premium to Highcroft’s closing price of 600.0 pence on the same date. The transaction values Highcroft’s issued and to-be-issued share capital at approximately £43.8 million.
Highcroft shareholders will also retain their interim dividend of 35 pence per share, set for payment on May 16, 2025, to shareholders on the register as of April 25, 2025.
The boards of both companies expressed confidence in the strategic and financial rationale of the acquisition, highlighting benefits such as improved liquidity, exposure to a larger, diversified portfolio, and access to LondonMetric’s investment-grade credit rating and cost-efficient structure. LondonMetric noted the deal aligns with its strategy of income-led returns and long-term outperformance.
“This transaction adds complementary assets in our favored sectors and supports our strategy of greater consolidation within the sector,” LondonMetric CEO Andrew Jones said. “We’re confident in our ability to extract economies of scale and deliver earnings accretion.”
Highcroft Chairman Charles Butler echoed the sentiment, stating, “The acquisition is a positive outcome for Highcroft shareholders, offering new shares in a highly rated company with a strong dividend history. As a smaller company, Highcroft faced challenges in maintaining competitive growth—this deal addresses those concerns while securing shareholder value.”
The acquisition has the support of primary members from Highcroft’s key shareholder groups, representing approximately 56.94% of shares issued.