14th Mar 2019 11:01
(Correcting that the resolution at the general meeting is for the liquidation of Local Shopping REIT, and not for the offer by Thalassa.)
LONDON (Alliance News) - The Local Shopping REIT PLC said on Tuesday it has rejected an offer made by surveying services firm Thalassa Holdings Ltd to acquire all remaining shares it does not own.
Thalassa is offering 14.64 pence in cash and 0.26 Thalassa consideration shares for every Local Shopping REIT share it does not already hold, the combination being equivalent to around 35.8p per share based on Thalassa's Monday closing price.
This equates to around GBP9 million in cash and up to 16.0 million Thalassa consideration shares. Thalassa's current stake in the real estate investment trust is 25.5%.
A general meeting is scheduled to be held on April 5, where a resolution to liquidate Local Shopping REIT will be proposed.
Local Shopping REIT has recommended shareholders to accept the resolution, and take no action regarding Thalassa's offer.
"The LSR board believes that there are compelling reasons for LSR Shareholders to reject Thalassa's offer and, instead, vote to authorise the LSR board to seek a return to them of the cash to which they are entitled, including by petitioning the court for a winding-up order," said Local Shopping REIT Chair Stephen East.
Also on Tuesday, Thalassa said it has listed on the Bourse de Luxembourg market of the Luxembourg Stock Exchange, in addition to its London listing.
Thalassa said it expects the dual-listing to make its shares more available to European investors, improving liquidity in the process.
In addition, making shares tradeable in the EU is expected to avoid any impediment in using Thalassa's shares for cross-border acquisitions following Brexit.
"We are doing everything we can to ensure the company can continue to execute its strategy effectively post-Brexit. The dual listing is one proactive step we have taken so that post-Brexit our shares will remain attractive in a cross-border M&A context," said Thalassa Chair Duncan Soukup.
Shares in Thalassa were down 1.2% at 80.00 pence on Thursday, while Local Shopping shares were 0.5% higher at 27.93p.
Related Shares:
Thalassa (di)LSR.L