24th Sep 2024 12:03
(Alliance News) - UK shopping centre investors NewRiver REIT PLC and Capital & Regional PLC on Tuesday said they have agreed a takeover offer by NewRiver that values Capital & Regional at GBP147 million.
Capital & Regional shareholders will receive 31.25 pence in cash, plus 0.41946 of a NewRiver share for each Capital & Regional share. This gives a value of 62.5 pence to each Capital & Regional share, based on the closing price of NewRiver shares on May 22, the day before its approach of Capital & Regional was first disclosed.
At that time, NewRiver first made a proposal to Growthpoint Properties Ltd about a potential takeover of Capital & Regional. Growthpoint owns 69% of Capital & Regional, and NewRiver and Capital & Regional on Tuesday said Growthpoint is "fully supportive" of the latest offer.
Capital & Regional shares were up 1.8% to 63.52p on Tuesday in London. They are up 23% from 51.50p on May 22.
Capital & Regional shares closed at ZAR15.55 in Johannesburg on Monday, up 29% since the May approach. Financial markets in South Africa are closed for Heritage Day on Tuesday.
NewRiver shares were up 0.1% at 82.35p in London. Shares in the real estate investment trust are up 11% since May 22.
Due to the share element of the offer, Capital & Regional shareholders will own 21% of the enlarged firm. Growthpoint will have a 14% stake, meaning other Capital & Regional shareholders will have a combined 7%.
NewRiver Chair Lynn Fordham noted the combined company will own a GBP900 million portfolio of retail properties, including 29 community shopping centres and 13 retail parks across the Britain and Northern Ireland.
Added Capital & Regional Chair David Hunter: "The combination of these two complementary portfolios provides our shareholders with both upfront liquidity through the cash element and equity exposure to an enlarged UK REIT, offering increased share liquidity from a broader shareholder base. In addition, the combination will result in further asset and tenant diversification and lower operating costs than would otherwise be achieved by Capital & Regional on a standalone basis."
By Tom Waite, Alliance News editor
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