JSE and LSE listed UK landlord Capital & Counties (Capco) and Shaftesbury PLC said on Monday that they are still in merger talks, leaving investors optimistic that the two companies will combine to become a multi-billion pound business.
Based on market capitalisations, the combined entity would be worth around R70bn.
Capco is familiar to South Africans for being formed out of late philanthropist and businessman, Donald Gordon’s Liberty International in 2010.
Capco owns Covent Garden, a mixed-use retail focused district in west London, while Shaftesbury owns Chinatown, a retail district.
The merger which would be completed via a share swop, would see Capco own 53% of the combined company and Shaftesbury 47%.
The combined companies would own 270 000 m2 of property. Capco currently owns a 25.2% stake in Shaftesbury.