LONDON (Alliance News) - Surveying services company Thalassa Holdings Ltd confirmed on Monday it will vote against The Local Shopping REIT PLC's proposal to pursue a members' voluntary liquidation.
The real estate investment trust on Friday noted Thalassa's intention and said that without its favour or abstaining from the vote, Local Shopping would not get the 75% majority needed to pass the resolution.
Thalassa currently holds a 25.48% stake in Local Shopping REIT, and has urged the trust to "engage openly with its shareholders with regard to establishing a credible and compelling forward plan instead of indulging itself in issuing misleading public statements".
At the end of October, Local Shopping REIT said it would hold a general meeting on Wednesday for shareholders to vote on the liquidation of the company, in the belief that it would be the optimum route to return value to shareholders.
Thalassa said it was not meaningfully consulted by Local Shopping in regard to the liquidation proposal, only by a brief meeting with shareholders before there was "reasonable opportunity" to express Thalassa's own views on the proposal.
Thalassa also said that it was concerned about Local Shopping's decision to publish its full-year results on Monday, only two days before the general meeting itself, which would give shareholders "unreasonably short period of time" to assess the results.
"Thalassa finds it deeply concerning that, in practical terms, shareholders are being asked to conclude on committing to a voluntary liquidation of Local Shopping without fully understanding the financial performance and position of Local Shopping," Thalassa said in a statement.
"Instead, LSR shareholders have been presented in the Circular with an indication of a potential return over a vague time frame, which is stated as "based on unaudited estimated values, should only be taken as an indicative value … and [on which] no reliance should be placed"," the company added.
For the year to the end of September, Local Shopping REIT reported a widened pretax loss of GBP7.2 million versus GBP858,000 the year before. Net rental income fell to GBP930,000 from GBP4.1 million.
The trust completed sale of 107 properties in the period and generated GBP28.2 million in gross proceeds, which were used to repay bank loans.
As at September 30, Local Shopping's portfolio was valued at GBP22.3 million. It holds 34 property assets valued at GBP9.3 million.
Shares in Thalassa Holdings were untraded on Monday, last quoted at 84.01 pence, while Local Shopping REIT shares were down 2.0% at 29.80p.
Thalassa (di) (THAL)