Capital & Regional has asked the UK’s Panel on Takeovers and Mergers to extend the deadline for NewRiver Reit to make an offer for the UK shopping centre owner.
The takeover panel had consented to an extension to facilitate discussions with NewRiver, Capital & Regional said in a statement on Thursday.
On May 23, Capital & Regional confirmed that its majority shareholder, Growthpoint Properties, had received a preliminary expression of interest from NewRiver Reit in relation to a possible offer in cash and shares for Capital & Regional’s entire issued capital.
NewRiver was required to either announce a firm intention to make an offer for Capital & Regional or announce that it did not intend to make an offer by no later than 5pm UK time on June 20.
In terms of the extension, NewRiver now has until 5pm on July 18 to announce its intention. The revised deadline may be extended further at the request of Capital & Regional and with the consent of the takeover panel.
There was no certainty that any firm offer would be made for the company nor the terms on which any offer would be made, Capital & Regional said.
In May Business Day reported that Vukile Property Fund would not be making an offer to take control of Capital & Regional.
Capital & Regional had received a nonbinding indicative proposal from Vukile regarding a possible cash and share offer. The proposal was made on April 19.
Vukile said it had engaged with Capital & Regional’s largest shareholder, Growthpoint, “to evaluate the potential terms and structure of a possible offer”.
However, Vukile “has not been able to reach agreement with Growthpoint as to the terms and structure of any possible offer and therefore confirms that it does not intend to make an offer”, the company said.
Growthpoint controls about 68.1% of Capital & Regional, which owns shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green.
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