13th Sep 2019 12:17
(Alliance News) - Local Shopping REIT PLC on Friday said valid tenders were received for 59.2 million shares by the closing date on Thursday and the tender offer will proceed as scheduled.
The 59.2 million shares represent 72% of Local Shopping's issued ordinary share capital, excluding treasury shares, and 96% of shares in issue - excluding treasury shares and shares held by Thalassa Holdings PLC. This exceeds the acceptance condition for at least 40.5 million valid tenders.
The tendered shares will be purchased and cancelled on Monday next week at 31.33 pence per share.
Once the deal is complete, Thalassa - which agreed not to participate in the offer - will have an interest in 90% of Local Shopping's shares.
The tender offer will stay open for acceptances for another 14 calendar days after the closing date to allow shareholder to tender their shares if they so choose.
Local Shopping noted that Thalassa's interest will exceed 75% once the repurchase completes, and advised shareholder to consider that Local Shopping's continued London Stock Exchange listing depends on the level of take-up from the offer and that, if the offer exceeds 75%, Thalassa will "consider undertaking a corporate action or re-organisation such LSR continues to be able to meet the 'shares in public hands' eligibility requirement under the listing rules".
Should it be unable to complete a reorganisation or other action, then Thalassa will seek approval to cancel Local Shopping's listing and consider re-listing it as a private company.
Local Shopping also repeated the comment from its circular that the directors unanimously recommend the tender offer and all directors intend to accept it or have done so already.
Shares in Local Shopping were untraded at 30.30p in London on Friday at midday. Shares in Thalassa were also untraded at 72.50p.