27th Jun 2019 16:13
(Alliance News) - Unite Group PLC on Thursday said it is in advanced talks to acquire fellow student accommodation business Liberty Living Group.
Unite said it was responding to "recent media speculation" on the acquisition, although it did not cite any specific news story.
The company is currently in talks with Canada Pension Plan Investment Board, Liberty Living's only shareholder. Following a completed deal, Canada Pension Plan would be a significant shareholder in the combined group.
At the end of February, Liberty Living had an net asset value of GBP1.4 billion. Unite said the transaction, if it goes ahead, "will be priced on a NAV-for-NAV basis" in a combination of cash and shares.
The potential acquisition is to be funded though an equity placing of no more than 10% of Unite's current share capital, maintaining current leverage targets.
The acquisition, which Unite considers "transformative", would need shareholder approval.
Shares in Unite were down 2.3% at 950.00 pence on Thursday afternoon.
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