F&C offers alternative to block £1.6bn property trust merger

F&C is hoping to prevent its Commercial Property trust (FCPT) being merged into the UK Commercial Property trust by offering an alternative deal.

This morning, the board of FCPT has agreed to a takeover by the Ignis-managed UK Commercial Property trust (UKCPT). Under the terms of the deal, FCPT Shareholders will receive new UKCPT shares on a NAV for NAV basis. Alternatively, there is the option of a cash exit for FCPT shareholders at 91p per share. Although subject to shareholder approval, the enlarged UKCPT would become the sixth largest UK listed property company, with a market capitalisation of £1.6bn. It is also expected to lead to a reduction in the TER to 0.7%. However, F&C says its proposal would offer reduce costs ...