Landlord eyes controlling stake in Shopping-Centre owner
The directors of Growthpoint Properties Limited (Growthpoint) and the directors of Capital & Regional plc (Capital & Regional) have announced that they have reached agreement on a recommended substantial investment by Growthpoint in Capital & Regional.
The first part of the deal will see Growthpoint will pay 33p per share to acquire approximately 30.3 per cent of Capital & Regional. The second part of the deal will see Growthpoint subscribe for 311.5m new Capital & Regional shares, at a price of 25p each to raise £77.9m before costs for the company.
Following the two transactions, Growthpoint will own a controlling 51 per cent stake of Capital & Regional’s enlarged share capital. The deal is conditional on shareholder approval, as well as regulatory approval from the UK Financial Conduct Authority and Johannesburg Stock Exchange.
Commenting on the proposed transaction, Hugh Scott-Barrett, chairman of Capital & Regional said: “The Capital & Regional Board is unanimously recommending the Proposed Transaction as we firmly believe it provides a transformational catalyst for the future growth of Capital & Regional to the benefit of all shareholders.
“Not only does it provide a liquidity event for shareholders at a significant premium to the Company’s share price prior to this Announcement, it also delivers a cash injection of approximately £77.9 million that de-risks the business and provides a long-term foundation for growth.
“This puts Capital & Regional on the front foot by reducing leverage and allowing our strong management team to focus its full attention onto executing its strategy and implementing the roll out of its community centre asset management plan.
Francois Marais, chairman of Growthpoint, also commented: “Growthpoint views its investment in Capital & Regional as an exciting next step in the execution of its internationalisation strategy. Growthpoint is fully supportive of Capital & Regional’s “needs based” retail strategy and of the management of Capital & Regional. Growthpoint looks forward to a productive and profitable ongoing engagement with the management of Capital & Regional to assist Capital & Regional to achieve its stated objectives.”