Rugby Estates agrees to Lingfield offer
The board of Rugby Estates has agreed on the terms of an acquisition offer from Bath-based Lingfield Properties.
Rugby Estates has been winding down its business since December 2008 and ceased to trade on AIM on 17 June 2013 following shareholder consent. The offer from Lingfield values the company's entire shared capital at £1.53m.
Under the terms of the offer made by Lingfield, Rugby Estates shareholders will receive 140 pence in cash per share, representing a premium of 80.65 per cent.
The board of Rugby Estates said it will take a further 12 to 18 months to gain shareholder approval of the ultimate winding up of the company and that shareholders will be unlikely to receive a final cash distribution before the end of 2016, due to the absence of a cash offer.
David Tweeddale-Tye, executive chairman of Rugby Estates, said: "Since the strategic review in December 2008, the Rugby Estates board has undertaken an orderly realisation of the company's property portfolio, returning the cash generated to shareholders, with a view to achieving a solvent liquidation of the company to return final value to shareholders.
"The offer provides Rugby Estates shareholders with an opportunity to receive a final cash payment now, rather than waiting for the completion of a liquidation process expected by the Rugby Estates board to be no earlier than the latter part of 2016."