UK’s student accommodation provider Unite Group has released a statement about media speculations regarding acquisition of Liberty Living Group plc (“Liberty Living”) by Unite.
The company has confirmed that discussions with the Canada Pension Plan Investment Board(CPPIB), Liberty Living’s sole shareholder, regarding a potential transaction are at an advanced stage.
”If the transaction goes ahead it will be priced on a NAV-for-NAV basis. As at 28 February 2019, Liberty Living’s NAV was £1.4 billion. The transaction consideration will be a combination of cash and shares such that CPPIB would become a significant shareholder in the enlarged group upon completion, ” the company said on Thursday.
”It is expected that part of the cash consideration will be funded through an equity placing representing no more than 10% of Unite’s current issued share capital and the Group will maintain its existing leverage targets.”
”There can be no certainty that any transaction will be agreed and a further announcement will be made if and when appropriate,” the company said.