A decision is imminent on the proposed merger between two major UK property investment vehicles.
Shareholders in two of the largest
property investment trusts must now make a final decision on a proposed merger.
F&C Commercial Property is looking to combine with UK Commercial Property in what seemed to be a fairly simple merger, but the Financial Times claims that it has become anything but straightforward.
The lack of a premium in the deal means that the proposals appear to favour the Phoenix Group, which owns two-thirds of UK Commercial Property and manages the trust.
F&C minority shareholders could be concerned by the lack of a premium, the publication explains, as shares can currently be sold for more than is being offered.
Yet the promise of a seven per cent dividend could persuade them to sanction the deal and stay on board.
Investec Asset Management's Max King, who holds significant shares in both trusts, announced earlier this month that he would oppose the merger.
Mr King felt that the combined value of the
commercial development assets from both trusts will be less that the sum of the parts.
Posted by Tess Nelson.
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