Simon Property Group, which owns 5% of Capital Shopping Centres Group, on Wednesday submitted an indicative proposal of 425 pence per share in cash to the board of Capital.

This is in regard to the planned acquisition of Trafford Centre Group by Capital.

In a letter to the board of Capital, Simon says "we believe that our proposal provides a full and fair premium valuation to CSC (Capital Shopping Centre) shareholders".

A cash offer of 425 pence per CSC share would represent a premium of 26% to CSC's closing share price of 337 pence immediately prior to the commencement of the offer period on November 24, 2010.

It says this represents a premium of 21% to CSC's average daily closing price over the 6-month period prior to commencement of the offer period on November 24, 2010; a premium of 16% to the blended share price of 367 pence at which CSC is proposing to issue 25% of the company's shares to Peel to fund the acquisition of the Trafford Centre.

Simon adds that a cash offer represents a premium of 13% to CSC's diluted net asset value per share of 377 pence as of November 1, 2010; and a premium of 7% to CSC's closing share price of 396 pence on December 14, 2010, the day before the date of this letter.

Source: I-Net Bridge