24th May 2018 07:46
LONDON (Alliance News) - London and Johannesburg-listed Capital & Counties Properties PLC said on Thursday it is considering a demerger, which would result in two separately-listed companies, both with their own "distinct investment prospects".
One would be centred around Covent Garden, valued at over GBP2.5 billion as at December 31, to be launched as an independent, prime central London retail-focused REIT, led by current Capital & Counties Chief Executive Ian Hawksworth.
The other would be a London development company centred around the Earls Court masterplan, led by current Managing Director & Chief Investment Officer Gary Yardley. Capital & Counties's interest at Earls Court - adjusted for the sale of The Empress State Building - was valued at GBP759 million at December 31.
A demerger, if pursued, would be formalised by the end of this year, the FTSE 250 constituent said. It didn't say whether or not it would remain dual listed in Johannesburg and London following the demerger.
As a consequence of the decision to consider a demerger, Ian Durant has said that, whilst he is fully supportive of the decision, in light of his eight-year tenure as chairman and external commitments, it would be "appropriate to put in place his successor" through this process. Durant has therefore notified the board of his intention to resign as chair.
Capital & Counties said it has appointed Henry Staunton, currently senior independent director, as chairman with effect from June 5.
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