LONDON (Alliance News) - Thalassa Holdings PLC said Thursday it has extended the deadline for its GBP30 million offer to buy Local Shopping REIT PLC after only 19% of shareholders had so far accepted the deal.
Thalassa made the cash-and-share offer for Local Shopping REIT in early February. Local Shopping shortly after rejected the offer as being opportunistic.
Thalassa had offered to give shareholders 4.64 pence in cash and 0.26 Thalassa shares per Local Shopping REIT share held. This is equivalent to around 35.7 pence per share.
The new deadline is April 10, the initial closing date had been on Wednesday.
In a separate announcement on Thursday, Local Shopping REIT announced that the deadline extension followed the Thalassa deal securing only 18.9% of valid acceptances by the original deadline.
Combined with the 25.5% holding in Local Shopping REIT that Thalassa already holds, this did not hand Thalassa enough support to declare the offer unconditional.
Local Shopping REIT also reiterated it was "concerned regarding the quality" of the shares in Thalassa offered under the deal and continues to recommend shareholders reject it.
"The board remains unwavering in its aim of obtaining a full cash exit for LSR shareholders and thereby fulfilling the shareholder-approved investment policy and returning to all shareholders, including Thalassa, their share of the cash to which they are entitled," Local Shopping REIT added.
Shares in Thalassa were untraded at 80.00 pence on Thursday, Local Shopping REIT down 0.7% at 28.00p.
Thalassa (di) (THAL)