9th Jan 2019 15:36
LONDON (Alliance News) - Local Shopping REIT PLC said Wednesday it is aware of Thalassa Holdings Ltd preparing an offer for shares in the real estate investment company that it does not already own.
Local Shopping REIT recommended shareholders "take no action" until Thalassa's offer has been published and Local Shopping REIT has had an opportunity to comment on the details of the offer.
Local Shopping REIT said Thalassa's announcement is to be treated as a "possible offer" and there is "no certainty" any offer will be made.
Thalassa shares were untraded Wednesday, last quoted at 81.50 pence each, while Local Shopping REIT shares were 2.9% lower at 27.20p.
Earlier Wednesday, Thalassa said it is preparing an offer for the shares in Local Shopping REIT it does not already own.
It comes after Thalassa, which holds just over 25% of Local Shopping REIT, in December effectively blocked a move by Local Shopping REIT to wind itself up.
A wind-up resolution was voted on at a general meeting held at the time, where 62% of shareholders voted in favour of winding up the firm, falling short of the 75% majority required. Effectively all votes against were Thalassa's.
"Thalassa did not support the voluntary liquidation for reasons set out in previous announcements, most recently on December 10 2018," Thalassa said.
"The company's view of the voluntary liquidation proposal was that it included a number of uncertainties for Local Shopping REIT shareholders including value erosion during the liquidation process, uncertain transactional costs and an open-ended timetable," it continued.
"By contrast, Thalassa believes there remains value in maintaining Local Shopping REIT as an investment vehicle with a revitalised investment strategy under new management and a materially reduced cost base."
As a result, Thalassa is planning an offer for the remaining shares in the real estate investment trust that it does not already have, though gave no further details.
Related Shares:
Thalassa (di)LSR.L