Thalassa makes possible offer for Local Shopping REIT – Thalassa says that it did not support Local Shopping REIT’s member’s voluntary liquidation in December 2018 for reasons that Thalassa has set out in previous announcements, most recently on 10 December 2018.
On that date, Alliance News reported that “Thalassa said it was not meaningfully consulted by Local Shopping in regard to the liquidation proposal, only by a brief meeting with shareholders before there was ‘reasonable opportunity’ to express Thalassa’s own views on the proposal. Thalassa also said that it was concerned about Local Shopping’s decision to publish its full-year results on Monday, only two days before the general meeting itself, which would give shareholders ‘unreasonably short period of time’ to assess the results. ‘Thalassa finds it deeply concerning that, in practical terms, shareholders are being asked to conclude on committing to a voluntary liquidation of Local Shopping without fully understanding the financial performance and position of Local Shopping,’ Thalassa said in a statement. ‘Instead, LSR shareholders have been presented in the Circular with an indication of a potential return over a vague time frame, which is stated as based on unaudited estimated values, should only be taken as an indicative value … and [on which] no reliance should be placed’, the company added.”
Tthalassa’s view was that there were a number of uncertainties for LSR shareholders including value erosion during the liquidation process, uncertain transactional costs and an open-ended timetable. By contrast, Thalassa believes that there remains value in maintaining LSR as an investment vehicle with a revitalised investment strategy under new management and a materially reduced cost base.
Thalassa is mindful that certain LSR shareholders wish to achieve an exit, in whole or in part, from their investment. Accordingly, Thalassa is preparing an offer for the entire issued and to be issued share capital of LSR it does not already own. Thalassa expects to publish further detailed terms in relation to its possible pffer on or prior to 6 February 2019.
LSR : Thalassa makes possible offer for Local Shopping REIT