Urban & Civic has accepted the terms of a recommend cash offer by The Wellcome Trust, in a deal that values the property developer at £506 mln.
The Wellcome Trust is offering 345 pence in cash, representing a premium of 63.5% to the closing price of 211.0 pence on the day prior to the announcement and is fully in line with the firm's unaudited EPRA NAV of 343.2 pence per share at 30 September 2020.
The Urban&Civic directors, advised by J.P. Morgan Cazenove, consider the terms of the acquisition to be fair and reasonable. The operation needs approval by at least 75% of shareholders.
Commenting on the acquisition, Alan Dickinson, Chairman of Urban&Civic, said: ‘The proposal rests on comprehensive industrial logic. Urban&Civic was established just ten years ago with the specific intention of disrupting prevailing residential presumptions and now leads in strategic site Master Development. Wellcome is steeped in property experience and has a strong record of alternative asset class investment. The acquisition provides a persuasive outcome for all stakeholders. Finally, the move is especially timely as the Government consults on its Planning White Paper. The introduction of additional patient institutional capital is a key component of successful large site delivery to meet identified housing need.’
Commenting on today's announcement, Peter Pereira Gray, managing partner and Chief Executive Officer of the Investment Division of Wellcome, said: ‘We know the Urban&Civic business and its experienced management team from our recent joint venture together. We welcome Urban&Civic's management and employees to Wellcome and look forward to working with them to invest in and develop the business further. We believe that the two groups' complementary strengths will create a business well-equipped to deliver Urban&Civic's long-term potential.’
