The board of Capital & Regional has recommended that shareholders accept a £147m offer from NewRiver REIT.
NewRiver has offered 31.25p in cash and 0.41946 new NewRiver shares for each Capital & Regional share.
The deal would create a £900m retail portfolio of 29 shopping centres and 13 retail parks. Capital & Regional said it would improve share liquidity for investors, give the company access to “cheaper and more flexible sources of capital” and give the company larger weightings in key indices.
NewRiver said it aims to have “individual business plans” for each Capital & Regional asset and that it “may consider the disposal of Capital & Regional’s smaller shopping centres on a selective basis”.
Capital & Regional’s offices at Strand Bridge House, WC2, would be sublet.
Photo from Capital & Regional
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