Johannesburg - UK real estate investment
trust Liberty International, which is to separate into two new
businesses, announced on Friday that the outstanding approvals in respect of
the South African listing status of both businesses have been received and
are satisfactory to the Liberty International board.
Liberty International announced earlier this week that it intends to
separate into two businesses - Capital Shopping Centres and Capital &
Counties.
It said the separation will be effected by way of a demerger of
Liberty International's central London focused property investment and
development division, to a new company called Capital & Counties Properties
PLC (Capital & Counties), from the rest of the Liberty International group
comprising predominantly the UK shopping centres business.
Liberty International, which will retain its UK regional shopping
centre assets, along with its US assets and Indian investments, will be
renamed Capital Shopping Centres group PLC (Capital Shopping centres).
"The Demerger will create distinct entities with separate strategic,
capital and economic characteristics and management teams: Capital Shopping
Centres, a prime regional shopping centre focused UK Reit, aiming to deliver
strong long-term returns through income and capital growth; and Capital &
Counties, a central London focused, non-Reit, property company focusing on
total return opportunities in London's real estate market," the group, which
is also listed in South Africa, said.
According to a prospectus issued on Friday, the secondary listing of
Capital & Counties Properties PLC on the JSE will be, for South African
exchange control purposes, an inward listing and the listing of the Capital
& Counties Ordinary Shares on the JSE will be treated as foreign assets in
the hands of South African resident Qualifying Shareholders with the
following consequences:
- South African resident investors who are individuals, corporate entities
or trusts may continue to hold, sell or buy Capital & Counties ordinary
shares on the Capital & Counties SA register without restriction; and
- South African resident institutional shareholders may only hold Capital &
Counties ordinary shares as part of their foreign portfolio allowances.
South African resident institutional investors who are qualifying
shareholders and who receive their Capital & Counties ordinary shares as a
direct consequence of the demerger, which receipt results in their foreign
portfolio allowances being exceeded, will be, in terms of the approval
received from the exchange control department of the South African Reserve
Bank, granted 24 months to realign their portfolios following their receipt
of the Capital & Counties ordinary shares.
"Capital & Counties properties PLC will continue to engage in
discussions with the South African Reserve Bank and the South African
National Treasury regarding the status of its secondary listing on the JSE
with a view to obtaining a directive from the minister of finance in South
Africa classifying the listing of Capital & Counties properties PLC on the
JSE as a domestic listing.
"However, there can be no guarantee that such a directive will be
obtained," Liberty International said.
It is expected that the name of Liberty International will change to
Capital Shopping Centres Group PLC at the close of business on Friday May 7
2010. On Monday May 10 2010, the Liberty International ordinary shares will
begin trading on the LSE and the JSE under the new name Capital Shopping
Centres group PLC.
- I-Net Bridge