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Workspace Group PLC on Wednesday said it has agreed to buy McKay Securities PLC in a cash and shares deal that values its fellow London property listing at £272 million.
Workspace offered 209 pence in cash, plus 0.115 of a new Workspace share, for each McKay share, valuing McKay shares at 297p, based on Workspace's closing price on Tuesday of 769.50p.
Shares in Workspace, a FTSE 250 constituent, were down 1.4% at 758.00p early Wednesday, while McKay shares were up 29% at 287.00p.
McKay's board, advised by Rothschild & Co, have unanimously recommended the offer to shareholders. Acceptances have been received for the offer representing 37% of McKay shares.
The combined company will have gross property assets of £2.9 billion, 84% of which is comprised of London office space.
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