11th Apr 2019 13:37
LONDON (Alliance News) - Thalassa Holdings Ltd on Thursday said it further extended its offer for Local Shopping REIT PLC, after failing to secure enough acceptances to declare it unconditional.
Thalassa has so far received valid acceptances in respect of 33.3 million Local Shopping REIT shares, or a 40.3% stake. The offer will now remain open until April 24.
"Local Shopping REIT shareholders now have a choice, either to accept Thalassa's certain and deliverable offer that provides an immediate return to shareholders or to rest their hopes on the Local Shooping REIT board's ability to deliver its uncertain liquidation proposal, which the Thalassa board believes is unlikely to succeed," Thalassa said.
The offer represents a value of 35.7 pence per share, formed by a cash and equity component. Thalassa is offering 14.64 pence in cash and 0.26 Thalassa shares per Local Shopping REIT share. The offer equates to around GBP9 million in cash and up to 16.0 million Thalassa consideration shares.
Responding to Thalassa's statement, Local Shopping REIT said Thursday it continues to have "significant reservations as to the quality of Thalassa's ordinary shares".
"The board considers Thalassa's ordinary shares to be unacceptably risky," the company said, adding that it believes shareholders will be exposed to Thalassa's loss-making trading if they accept the offer.
Local Shopping REIT concluded: "The board therefore continues to recommend that shareholders ignore Thalassa's offer and take no action in relation to it. The board remains unwavering in its aim of obtaining a full cash exit for shareholders and thereby fulfilling the shareholder-approved investment policy and returning to all shareholders, including Thalassa, their share of the cash to which they are entitled."
Thalassa shares were trading down 1.2% at 80.00 pence each while Local Shopping REIT shares were up 1.1% at 29.00p.
Related Shares:
Thalassa (di)LSR.L