30 May 2020
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CAPITAL & COUNTIES PROPERTIES PLC (‘Capco’ or ‘the Company’)
Acquisition of significant stake in Shaftesbury PLC
Capco today announces that it has agreed to acquire a 26.3% shareholding in Shaftesbury PLC (‘Shaftesbury’) across two tranches for total consideration of £436 million, at a price of 540 pence per Shaftesbury share (the ‘Investment’), representing a discount of 13.9% to the closing Shaftesbury share price on 29 May 2020.
The shares are being acquired from Veloqx (Jersey) Limited, as trustee of the Veloqx settlement, a discretionary trust established by Samuel Tak Lee for the benefit of himself and his immediate family.
- Unique opportunity to acquire a significant stake in an exceptional mixed-use real estate portfolio, adjacent to Capco’s world-class Covent Garden estate
- Attractive investment and entry price relative to historical levels and the Board’s view of the future long-term prospects for prime central London
- Consistent with Capco’s strategy to invest in attractive and complementary opportunities on or near the Covent Garden estate
- Capco maintains a strong balance sheet with access to significant liquidity – on a pro forma basis as at 31 March 2020, the Investment results in an LTV of 30%, with £525 million of cash and undrawn committed facilities
Ian Hawksworth, Chief Executive of Capco, commented:
‘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.’
Investment structure and shareholder approval
The acquisition of 64.4 million shares for £348 million in cash, representing 20.9% of Shaftesbury’s shares, is expected to…