Land Securities Group PLC (LSE:LAND) is to make a recommended cash offer for U and I Group PLC (LSE:UAI).
LandSec is offering 149p per U&I share, valuing the issued share capital of U+I at around £190mln. Shares in U+I closed at 86.0p on Friday.
The FTSE 100 property company said the acquisition of U+I would provide access to a significant pipeline of mixed-use development schemes, of which two are well-progressed through planning (Mayfield and the Manchester strategic regeneration framework).
U+I also provides access to a further high quality, office-led development in London (Landmark Court, Southwark) with planning consent.
The directors of U+I have recommended acceptance of the offer.
Landsec to acquire U+I for £190m https://t.co/ZensCsj2L9
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"Developing truly world-class mixed-use communities that inspire and create opportunity is more important than ever. The combination of LandSec and U+I is compelling and will help us accelerate our strategy, both by introducing exciting new urban development opportunities and by further strengthening LandSec's front end development capabilities and place-making skills. LandSec has tremendous potential and this transaction is an example of our ability to capitalise on our strengths and create future value for all of our stakeholders - investors, employees, communities and partners alike,” said Mark Allan, the chief executive officer LandSec.
Richard Upton, Allan’s counterpart at U+I, also described the combination as “compelling”.
“U+I's core portfolio of large, mixed-use regeneration schemes can now achieve its full potential with the capital, experience and market positioning that LandSec can provide. U+I's purpose to effect valuable social and economic changes through authentic, inclusive regeneration is an important proposition for LandSec and the wider industry,” Upton said.
“Our strategy to re-focus on what we do best has proved to be highly effective in capturing value for our existing shareholders and providing LandSec with an opportunity to unlock future value from our regeneration pipeline,” he added.