Britain’s NewRiver REIT will buy smaller rival Capital & Regional Plc in a stock-and-cash deal valued at about 147 million pounds ($196.1 million), the shopping centres and retail parks owner said on Tuesday.
The deal comes at a time of stabilising property values in the British commercial property sector and increased deal-making activity on the back of improved rental growth prospects.
Under the terms of the deal, Capital & Regional shareholders will get 31.25 pence in cash and 0.41946 new NewRiver shares for each share held.
The implied 62.5 pence-per-share offer represents a premium of more than 21% to the Capital & Regional stock’s closing price before the start of the offer period on May 23.
The acquisition of Capital & Regional’s portfolio comprising six community shopping centres will create an about 900 million pound retail portfolio for the combined group, NewRiver said in a statement.
Source Homevior.in
