Rugby Estates Investment Trust has this morning announced it has made an offer to buy private property company George Philip Properties Group for £21.5m.
The private company has assets in London and Northern Ireland. The deal has been structured so that Rugby will pay £100,000 in cash, up to £12.9m in loan notes and issue the purchasers with up to 8.49m shares in the company valued at 100p a share.
In addition, the company will take on the payment of liabilities of George Philip Properties Group on the completion of the purchase, of about £3.5m.
This is in line with RugbyReit’s mandate whereby the company was set up to buy other companies with inherent capital gains tax liabilities.