7th Mar 2019 16:52
LONDON (Alliance News) - Local Shopping REIT on Thursday described an offer from Thalassa Holdings Ltd as "an opportunistic attempt to take control of shareholders' money".
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%.
In response to this, Local Shopping REIT said it is committed to returning cash to shareholders as it endeavours to wind down the company. The trust said it would have sought to return more than the GBP9 million on offer through members' voluntary liquidation, but could not do so because of Thalassa's opposition.
Local Shopping REIT also considered the Thalassa's shares offered in exchange for trust shares to be "subject to a number of risks and uncertainties".
Shares in Local Shopping REIT closed up 1.4% at 29.00 pence on Thursday. Thalassa shares closed down 0.6% at 80.51p.
Related Shares:
Thalassa (di)LSR.L