Capco expects deal with peer Shaftesbury to become effective in early 2023
The envisaged transaction between two of the UK’s biggest real estate groups must still get clearance from the competition authorities
26 October 2022 - 19:52
by Andries Mahlangu
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Capital & Counties Properties (Capco), which is pursuing an all-share merger with UK peer Shaftesbury, expects the deal to become effective in the first quarter of 2023 once all regulatory approvals are obtained.
The proposed transaction between two of the UK’s biggest real estate companies is still awaiting clearance from competition authorities, Capco said in a statement on Wednesday.
The planned merger comes at a time when the real estate market is under considerable pressure from the rising interest-rate environment, increasing the cost of capital while eroding consumers’ disposable income.
Capco shares rebounded nearly 5% to close at R22.55 on the JSE on Wednesday, in line with a recovery in the pound, but are still down 37% since the start of 2022.
Capco, which counts the Public Investment Corporation (PIC) among its shareholders, was just recovering from Brexit and Covid-19 before high inflation and the energy crisis hit.
With the planned merger, the two companies are looking to derive many benefits such as cost savings and enhanced access to capital markets.
The companies have said the tie-up will give them access to swathes of the West End, home to London’s major tourist attractions, shops, businesses, government buildings and entertainment venues.
Shareholders of the two companies have already given the merger, which was initially expected to be concluded by the end of 2022, the green light.
The two companies expect to put in place additional arrangements to facilitate the ongoing payment of ordinary dividends for the fourth quarter of 2022 to both sets of shareholders in the period up to completion of the deal.
Capco is set to own 47% of the combined company and Shaftesbury 53%, and together they will have a portfolio of about 270,000m², including high-profile centres such as Soho and Carnaby.
Capco’s Ian Hawksworth will head the combined entity, which will be named Shaftesbury Capital, while existing Shaftesbury CEO Brian Bickell will retire once the merge is complete.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Capco expects deal with peer Shaftesbury to become effective in early 2023
The envisaged transaction between two of the UK’s biggest real estate groups must still get clearance from the competition authorities
Capital & Counties Properties (Capco), which is pursuing an all-share merger with UK peer Shaftesbury, expects the deal to become effective in the first quarter of 2023 once all regulatory approvals are obtained.
The proposed transaction between two of the UK’s biggest real estate companies is still awaiting clearance from competition authorities, Capco said in a statement on Wednesday.
The planned merger comes at a time when the real estate market is under considerable pressure from the rising interest-rate environment, increasing the cost of capital while eroding consumers’ disposable income.
Capco shares rebounded nearly 5% to close at R22.55 on the JSE on Wednesday, in line with a recovery in the pound, but are still down 37% since the start of 2022.
Capco, which counts the Public Investment Corporation (PIC) among its shareholders, was just recovering from Brexit and Covid-19 before high inflation and the energy crisis hit.
With the planned merger, the two companies are looking to derive many benefits such as cost savings and enhanced access to capital markets.
The companies have said the tie-up will give them access to swathes of the West End, home to London’s major tourist attractions, shops, businesses, government buildings and entertainment venues.
Shareholders of the two companies have already given the merger, which was initially expected to be concluded by the end of 2022, the green light.
The two companies expect to put in place additional arrangements to facilitate the ongoing payment of ordinary dividends for the fourth quarter of 2022 to both sets of shareholders in the period up to completion of the deal.
Capco is set to own 47% of the combined company and Shaftesbury 53%, and together they will have a portfolio of about 270,000m², including high-profile centres such as Soho and Carnaby.
Capco’s Ian Hawksworth will head the combined entity, which will be named Shaftesbury Capital, while existing Shaftesbury CEO Brian Bickell will retire once the merge is complete.
mahlangua@businesslive.co.za
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