(Sharecast News) - Capital & Counties Properties has agreed to buy a 26.3% stake in Shaftesbury for £436m.
Capco will make the acquisition in two tranches. It will buy 64.4m shares - a 20.9% stake - for £348m in cash in a deal expected to complete on Wednesday. A subsequent tranche of 16.3m shares, equivalent to a 5.3% stake, will be bought for £88m in cash.
The purchase price of 540p a share represents a 13.9% discount to the closing Shaftesbury share price on 29 May.
The investment is being funded fully through Capco's £705m Covent Garden revolving credit facility, of which £255m remains available for drawdown.
The shares are being acquired from Veloqx, which is a discretionary trust established by Samuel Tak Lee.
Capco chief executive Ian Hawksworth said: "As long-term investors in the Covent Garden estate and the West End, the investment in Shaftesbury represents a unique opportunity to deploy our capital in an exceptional portfolio at an attractive entry price, which we believe will generate long-term value for Capco shareholders.
"Capco's world-class estate, strong balance sheet and significant financial flexibility ensure that the company is well positioned. Whilst we can expect continued market uncertainty in the near term, we are confident about the long-term fundamentals and prospects for the West End and prime central London."
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