Vukile Property Fund confirmed on Thursday it had made a ‘non-binding indicative proposal’ to acquire Capital & Regional PLC in a possible cash-share deal.
The Johannesburg-based real estate investment trust, which indicated this offer is at an early stage, has until June 22 to make a firm offer to Capital & Regional.
In a separate statement on Thursday, Capital & Regional said it had received on April 19 a ‘non-binding indicative proposal’ from Vukile.
Capital & Regional also confirmed that it is aware that its majority shareholder Growthpoint Properties Ltd, which holds 68% of Capital & Regional, had also received a ‘preliminary expression of interest’ from NewRiver REIT PLC.
NewRiver may make a cash-share offer to buy the entire issued share capital of Capital & Regional.
But Capital & Regional said it had received no offer proposal from NewRiver at this stage. ‘There can be no certainty that any firm offer will be made for the company, nor as to the terms on which any offer will be made,’ Capital & Regional said.
In its own statement, NewRiver said on Thursday it had made a proposal to Growthpoint about a potential takeover of Capital & Regional. It also confirmed that it had not communicated that proposal to Capital & Regional.
‘It is intended that this would occur if Growthpoint confirms that it would be prepared to support the terms of that possible offer,’ NewRiver said.
NewRiver said it recognised that Capital & Regional must make its own fair and reasonable assessment of the possible offer if it is made.
With a market capitalisation of £230.7 million, NewRiver said it believes that a combination with Capital & Regional would be significantly accretive to its earnings and result in a pro-forma loan to value ratio that is broadly in-line with its guidance.
‘There can be no certainty that any offer will be made, nor as to the terms of any such offer,’ NewRiver said.
Shares in Capital & Regional rose 13% to 58.13 pence in London on Thursday, giving it a market capitalisation of £130.7 million. They surged 17% to R 14.10 in Johannesburg.
Vukile stock was up 0.2% to R 15.17 in Johannesburg, translating to market capitalisation of R 16.74 billion, or about £727.8 million. Shares of NewRiver fell 0.4% to 74.24p in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
