(Alliance News) - Shaftesbury PLC and Capital & Counties Properties PLC confirmed on Monday they remain in "advanced" discussions regarding a possible all-share merger of the two companies, as Shaftesbury agreed to give Capco an extension of the deadline to make a firm offer.
By June 17, Capco is required to either announce a firm intention to make an offer for Shaftesbury or announce that it does not intend to make an offer.
Capco was originally required to decide by no later than June 4.
These discussions are continuing to progress, Shaftesbury said.
The merger would create a real estate investment trust focused in the West End of London, holding a combined portfolio of 2.9 million square feet of lettable space located in Covent Garden, Carnaby and Chinatown.
Under the merger's proposed terms, shareholders in Shaftesbury excluding Capco will own 53% of the combined firm, while Capco's own shareholders will pick up a 47% interest. Capco currently holds a 25% stake in Shaftesbury.
Shaftesbury shares were up 1.0% at 608.89 pence in London early Monday, while Capco shares were up 1.5% at 161.70p. In Johannesbury, Capco shares were up 1.3% at ZAR31.60.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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