Capital and Regional buys time as talks progress


Capital and Regional buys time as talks progress

Published Date: 2019-10-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Capital and Regional buys time as talks progress

The UK regional shopping centre owner has asked for the deadline for a possible offer to be extended by nine days as talks reach an advanced stage.

Capital & Regional has asked the UK's Panel on Takeovers and Mergers to extend a 'put up or shut up' (PUSU) deadline to 18 October as talks takeover talks with Growthpoint Properties continue. The deadline was set for the close of business yesterday.

Under the UK's Takeover Code, a potential bidder has to announce a firm intention to make an offer within 28 days of first announcing talks or walk away, unless an extension is granted. C&R alerted the market to its discussions with Growthpoint to acquire a majority stake in the company through a combination of a partial offer in cash for shares and a capital injection through a subscription for new shares on 11 September.

C&R invests in community shopping centres mostly around London. The investment by Growthpoint Properties is aimed at alleviating pressure on its balance sheet and boosting liquidity following a decline in the value of its centres.

The group reported a first-half loss due to the lower valuations, which have been driven by negative sentiment towards the sector. It didn't declared a dividend for the six months to end-June pending the outcome of its negotiations with Growthpoint.

Growthpoint said last month that it saw an opportunity due to the 'dislocation' in the UK as concerns around Brexit and the shift to online shopping weighed on the retail property market. Although C&R's shares have risen by a quarter since early September in anticipation of an offer, they have fallen by 55% over the past 12 months.

C&R dropped 6.2% to R3.32 yesterday and Growthpoint closed 0.9% lower at R22.33.

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