Business
Additional Investment of £65m in Shaftesbury PLC
Additional Investment of £65m in Shaftesbury PLC.
About this update from Shaftesbury Capital Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9021C\n Capital & Counties Properties Plc\n 22 October 2020\n \n \n \n 22 OCTOBER 2020\n \n \n \n \n LEI: 549300TTXXZ1SHUI0D54\n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\n \n \n FOR IMMEDIATE RELEASE\n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n CAPITAL & COUNTIES PROPERTIES PLC (\"CAPCO\")\n \n \n ADDITIONAL INVESTMENT OF £65 MILLION IN SHAFTESBURY PLC\n \n \n \n \n \n Further to the announcement earlier today by Shaftesbury PLC (\"Shaftesbury\") of its intention to raise up to £307 million of gross proceeds through a firm placing, placing and open offer and an offer for subscription (the \"Capital Raising\"), Capco confirms it has committed to subscribe for £65 million of new Shaftesbury shares (the \"Investment\"), at the placing price of 400 pence, resulting in a shareholding in Shaftesbury following completion of the Capital Raising of over 25 per cent. Capco has also committed to vote in favour of the requisite resolutions at the General Meeting of Shaftesbury shareholders, due to be held on 17 November 2020.\n \n \n \n \n \n The Board believes that the Investment is priced attractively in view of the long-term prospects and resilience of prime central London and is consistent with Capco's strategy to invest in attractive opportunities on or near the Covent Garden estate. \n \n \n \n \n \n Capco continues to actively manage its portfolio of assets with a focus on creating long-term value for shareholders as well as maintaining a strong balance sheet and significant liquidity to manage the business through current market uncertainty and to position it for long-term growth. Capco recently completed the sale of the Wellington block for £76.5 million (in line with the 30 June 2020 valuation) which is reflective of the continued demand for attractive prime central London assets. In addition, £105 million of deferred consideration from the Earls Court sale is due to be received in November 2020 with the balance of £15 million due in 2021.\n \n \n \n \n \n Capco's strong financial position allows the Investment to be funded from existing cash resources. On a pro forma basi...