(Alliance News) - Local Shopping REIT PLC said Tuesday that Thalassa Holdings Ltd has agreed to support the company's plan to return capital to Local Shopping REIT shareholders.
Local Shopping REIT plans to return capital through a capital reduction and buyback tender offer at a price per share equal to the real estate investment trust's net asset value per share, which will be set out on Thursday, in its interim results.
Thalassa, which provides surveying services, will not take part in the buyback tender offer, but will vote in favour of all resolutions at Local Shopping REIT's upcoming general meeting required to implement the return of capital.
Thalassa, since January had been looking to acquire all of Local Shopping REIT by buying shares it did not own, after blocking a resolution proposed in December for Local Shopping REIT to voluntarily wind up. Thalassa currently holds 26% of Local Shopping REIT.
However, the offer lapsed in early May after receiving insufficient acceptances, despite having extended the offer since April.
Thalassa had offered 14.64 pence in cash and 0.26 Thalassa consideration shares for every Local Shopping REIT share it did not already hold.
Local Shopping REIT reiterated its belief that the proposals "now represent the best route" for achieving its mandated investment policy and providing a full cash return to shareholders in the near term.
Shares in Local Shopping REIT were up 7.7% at 29.40 pence, while Thalassa shares were untraded on Tuesday at 80.00p.
Thalassa (di) (THAL)