Simon Property Group, Inc. has welcomed the announcement by UK property group Capital Shopping Centres has decide to adjourn its proposed EGM on the intended acquisition of Trafford Centre Group until late-January.

"Simon believes its indicative offer of 425 pence per share represents a full and fair valuation for CSC, allowing shareholders to receive a substantial premium to CSC's latest NAV and to the price of 367 pence, at which CSC is proposing to issue 25% of its shares to Peel Group," Simon Property said on Monday.

It added: "The conditions set forth in Simon's indicative offer are customary and should pose no barrier towards consummating a transaction.

Simon's board is fully supportive of the indicative offer, and given Simon's strong balance sheet, access to capital and track record of successfully completing acquisitions, there can be no serious doubt as to Simon's desire and ability to complete the proposed transaction.

"CSC publicly stated on December 8 that it would not provide customary non-public due diligence information in light of the fact that Simon had not made an indicative offer.

Simon has now made an indicative offer, and we expect CSC to provide the information requested so that Simon is in a position to make a formal offer for the benefit of CSC's shareholders.

Simon stands ready to commence due diligence immediately."

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, but this was rejected by the latter.

Source: I-Net Bridge