6th Feb 2019 18:27
(Correcting that Thalassa's revenue was not maiden and adding information related to the sale of WGP).
LONDON (Alliance News) - Local Shopping REIT on Wednesday said it will consider an offer received by Thalassa Holdings Ltd to acquire the stake it does not hold in the company.
The real estate investment trust, however, noted that the cash element of the offer is "significantly less" than the amount it would have sought to return to shareholders through the members' voluntary liquidation proposed at the end of 2018, which was opposed by Thalassa.
The trust, therefore, is currently recommending that shareholders take no action.
Earlier on Wednesday, Thalassa issued terms for an offer to be made to acquire the remaining stake it does not hold Local Shopping REIT PLC.
Thalassa currently holds 21.0 million Local Shopping REIT shares, representing a 25.5% stake.
Thalassa offered 14.64 pence per Local Shopping share plus 0.26 Thalassa "Consideration Shares", valuing the firm at GBP9.0 million in cash and 16.0 million consideration shares.
Thalassa shares closed up 1.4% at 71.00p while Local Shopping REIT shares closed down 4.9% at 27.20p.
Furthermore, Thalassa said that its annual pretax loss widened significantly due to higher cost of sales and administrative costs.
For 2018, the surveying services company posted pretax loss of USD6.5 million compared to USD2.5 million the year prior.
Administrative costs surged to USD4.4 million from USD1.5 million while sale costs were also higher at USD105,839 from USD34,643.
At the beginning of January, Thalassa sold the assets of its main operating business, WGP Group Ltd, for USD20 million plus a potential USD10 million earn out.
Including discontinued operations, the company recorded a USD13.4 million gain on disposal and a profit for the year of USD7.2 million.
The company generated revenue of USD3,188 during the year.
Related Shares:
Thalassa (di)LSR.L