UK's NewRiver REIT to buy Capital & Regional in $196 mln deal (updated)

Newriver Reit

24/09/2024 07:52

(Adds sector context in paragraph 2, details of deal in
paragraphs 3-5)
       Sept 24 (Reuters) - Britain's NewRiver REIT  NRRT.L 
will buy smaller rival Capital & Regional Plc  CAL.L  in a
stock-and-cash deal valued at about 147 million pounds ($196.1
million), the shopping centres and retail parks owner said on
Tuesday.
    The deal comes at a time of stabilising property values in
the British commercial property sector and increased deal-making
activity on the back of improved rental growth prospects.
    Under the terms of the deal, Capital & Regional shareholders
will get 31.25 pence in cash and 0.41946 new NewRiver shares for
each share held.
    The implied 62.5 pence-per-share offer represents a premium
of more than 21% to the Capital & Regional stock's closing price
before the start of the offer period on May 23.
    The acquisition of Capital & Regional's portfolio comprising
six community shopping centres will create an about 900 million
pound retail portfolio for the combined group, NewRiver said in
a statement.
    ($1 = 0.7497 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu)
 ((abyjose.koilparambil@thomsonreuters.com))