Teddy Sagi’s LabTech Investments has agreed to buy Market Tech in a deal which values the company at around £892.5m.
The Israeli billionaire, who founded Market Tech and owns 71% of the group through LabTech, has agreed to pay shareholders 188p per share for the remaining stake.
The cash offer for Market Tech is a 30% premium to the company’s closing price on Thursday and a 36% premium to the average price over three months prior to the offer. Market Tech was admitted to London’s AIM in late 2014. Assets include Camden Lock Market, Stables Market, Camden Lock Village, Union Street Market and Camden Wharf.
LabTech (formerly Citwax Investments) said it made the offer because Market Tech is trading at a “material and persistent” discount to NAV, which has made accessing capital more expensive for the company and restricted Market Tech’s ability to expand. The combined company will invest in central London real estate outside of the Camden estate and further develop its co-working offering.
LabTech is a property and technology company established in 2014. Its primary assets are its shareholding in Market Tech and the Holborn Links Estate, a portfolio of 34 properties which it acquired for £300m in late 2016. Most recently, it has progressed a deal to buy the freehold of Bupa House, WC1, for around £75m.
Neil Sachdev, chairman of Market Tech, said: “The independent Market Tech directors have reviewed this cash offer in light of the potential of the Market Tech business whilst also considering the impact of both uncertain market conditions and the current rating for listed UK real estate companies with large scale long term developments.
“Against this background, the independent Market Tech directors believe the cash offer provides shareholders with a certain opportunity to realise future potential value today, at an attractive premium to the current share price.”
Rothschild is advising Market Tech; UBS is representing Lab Tech.
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