South Africa-listed Growthpoint Properties Ltd. seeks to buy an approximately 51.2% stake in the U.K.-based retail real estate investment trust Capital & Regional PLC.
Growthpoint agreed to offer 33 pence in cash per share to acquire 219,786,924 shares of Capital & Regional, representing approximately 30.3% of Capital & Regional's issued share capital. The offer values Capital & Regional's issued share capital at about £239.7 million. It will also subscribe to acquire 311,451,258 new shares of Capital & Regional at 25 pence apiece to raise about £77.9 million.
The offer price represents a premium of approximately 100% to the company's Sept. 10 closing price of 16.5 pence per share. The deal is expected to close by the end of 2019.
Capital & Regional's directors plan to recommend unanimously that the company's shareholders accept the offer.
Goldman Sachs is financial adviser to Growthpoint. Numis and J.P. Morgan Cazenove are joint financial advisers to Capital & Regional. FTI Consulting is PR adviser to the companies.