9th Dec 2019 10:16
(Alliance News) - Capital & Regional PLC said Monday it has completed the subscription needed as part of the proposed majority stake acquisition by Growthpoint Properties Ltd.
Back in October, Johannesburg-listed real estate investment trust Growthpoint said it will invest around GBP150.4 million for a 51% interest in the UK real estate firm Capital & Regional.
The first part of the investment was for Growthpoint to acquire 219.8 million existing shares in Capital & Regional for 33 pence per share, at a total of GBP72.5 million. The second part was for Growthpoint to subscribe for 311.5 million new Capital & Regional shares, at a price of 25p each to raise GBP77.9 million before costs for the company.
This has now been completed and the shares were admitted to the London Stock Exchange on Monday - meaning the offer is now wholly unconditional.
Capital & Regional now has 1.04 billion shares in issue.
Based on the admission, Growthpoint has nominated Norbert Sasse and George Muchanya as its representative to sit on the board of Capital & Regional. Capital & Regional said Wessel Hamman has stepped down an non-executive director to make way for the Growthpoint representatives.
Looking ahead, both Capital & Regional and Growthpoint said the offer remains open for acceptances until the second closing date on Friday, despite achieving a total level of acceptances for 444.2 million Capital & Regional shares, or over 61%.
Capital & Regional Chair Hugh Scott-Barrett said: "The successful completion of this transaction is transformational for the long term growth of Capital & Regional. It provides us with the resources and support to continue the roll out of our community centre asset management strategy, while at the same time allowing us to further reduce the company's leverage.
"The team at Growthpoint share our conviction that retail centres which focus on daily 'needs', rather than the 'wants', of the local communities they serve and which have a central role in their local economies, will continue to play an important part in the evolving retail landscape."
Growthpoint Chair Francois Marais added: "Growthpoint fully intends to support the growth of Capital & Regional's portfolio both as to quality and profitability.
"Growthpoint looks forward to a productive and profitable ongoing engagement with the management of Capital & Regional to assist Capital & Regional in achieving its strategic objectives."
Capital & Regional shares were trading 0.1% higher in London on Monday mid-morning at 28.32p each, while in Johannesburg, the shares were untraded at ZAR5.80 each. Growthpoint shares were 0.1% lower in Johannesburg at ZAR22.52 each.
By Paul McGowan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Capital & Regional