Local Shopping REIT PLC shareholder Thalassa Holdings Ltd. is evaluating a potential offer for the entire issued and to be issued share capital of the real estate investment trust it does not already own.
The move comes after Thalassa opposed the REIT's voluntary liquidation proposal, which only gathered 61.87% of favorable votes, falling short of the 75% approval threshold.
The shareholder noted that the liquidation plan contained several uncertainties for Local Shopping REIT's shareholders, including value erosion during the liquidation process, uncertain transaction costs and an open-ended timetable.
Thalassa is of the view that the REIT should remain an investment vehicle under a new management, with a renewed investment strategy and a materially trimmed cost base, according to a release.
Thalassa noted that certain Local Shopping REIT shareholders intend to partly or completely exit their investments in the REIT and that it is accordingly preparing an offer. It intends to publish further details on the possible offer on or before Feb. 6
Thalassa owned a 25.5% stake in the REIT as of December 2018.
In its response, the REIT said its board recommends that shareholders take no action until Thalassa has published the detailed terms in relation to the offer and the board has had a chance to review the terms.
Thalassa has until Feb. 6 to either announce a firm intention to make an offer for the REIT or decide otherwise.