(Reuters) - British actual property companies Capital & Counties Properties and Shaftesbury Plc mentioned they have been in superior talks on a merger that might deliver such London vacationer locations as Covent Garden and Soho underneath one umbrella.
Shaftesbury would personal 53% and Capco shareholders the rest in a deal structured as an acquisition of Shaftesbury by Capco, the businesses mentioned in a press release on Saturday.
They didn't give a worth for the deal. Sky News reported the merged companies would have a valuation of three.5 billion kilos ($4.3 billion).
The corporations mentioned the merger would create an actual property funding belief focussed on London's West End with a portfolio of some 2.9 million sq. ft (270,000 sq. metres) "in high-profile destinations including Covent Garden, Carnaby, Chinatown and Soho".
Norway's sovereign wealth fund, a shareholder in each companies, signalled its help for the merger, they mentioned.
The potential deal comes as London has began to choose up from pandemic lows and travellers get again on planes with easing of COVID-19 quarantine guidelines after practically two years.
When main British property offers have been at a standstill in early months of the pandemic in 2020, Capco purchased a 26.3% stake in London rival Shaftesbury from Hong Kong tycoon Samuel Tak Lee's for 436 million kilos ($538 million).
The belief can be led by Capco boss Ian Hawksworth and chaired by Jonathan Nicholls, chair of Shaftesbury, the businesses mentioned. Brian Bickell, who has been CEO of Shaftesbury for 11 years, would retire on completion of the merger.
Evercore and Blackdown Partners are advising the Shaftesbury board, and Rothschild & Co is advising Capco, the assertion mentioned.
($1 = 0.8106 kilos)
(The story refiles to appropriate spelling of "not" in third paragraph.)