Capital & Counties Properties (Capco) has received an extension of time to make a firm offer to Shaftesbury shareholders.
The UK-based real estate investment trust focused on sites in the West End of London, and which is listed on the London and on the JSE, said in a statement yesterday that extension was necessary as they were in “advanced discussions regarding a possible all-share merger of the two companies.”
Capco was meant to either announce a firm intention to make an offer for Shaftesbury, or announce that it does not intend to do so, by end of business June 4. The Takeover Panel had approved an extension to no later than 5pm on June 17, 2022 for Capco to make a decision, the group said.
Shaftesbury is a REIT that also invests in London’s West End. It owns about 600 buildings, including in east and west Covent Garden, Soho and Fitzrovia.
Under the proposed terms, the plan is for Shaftesbury shareholders, excluding the Shaftesbury shareholding owned by Capco, to own 53 percent of the combined company, and Capco shareholders to own 47 percent.
Capco currently owns about 25.2 percent of the existing share capital of Shaftesbury.
Capco’s share price increased 2.3 percent to R31.09 yesterday afternoon on the JSE.
BUSINESS REPORT