Hong Kong tycoon Samuel Tak Lee has agreed to sell off his stake in Shaftesbury to rival, Capco, for the sum of $540.7 million.
According to a report by Reuters on Monday, Capital & Counties Properties (Capco) will acquire a 26.3% stake in London rival Shaftesbury from Samuel Tak Lee’s for $540.7 million.
Capco and Shaftesbury both own large chunks of real estate in London’s prime West End central area. Capco is buying the stake from Veloqx, a trust fund owned by Tak Lee, for 540 pence per share, a discount of 13.9% to Shaftesbury’s closing share price on Friday.
Capco said the deal will be completed in two tranches. Capco plans to fund the deal through its shopping and entertainment estate Covent Garden’s revolving credit facility of 705 million pounds.
Capco shares rose 2.8% to 168 pence in early trade, while Shaftesbury, which rose as much as 3% on Friday, fell 0.5% after the deal was announced.
Samuel Tak Lee, a Hong Kongese billionaire, owns property management company Langham Estate, which controls a swath of prime retail and office space in London’s West End. His property empire stretches from Hong Kong and London to Geneva and Tokyo. He has built up his holdings to some 14 acres between the neighborhoods of Soho and Mayfair. He has a fortune Forbes magazine currently estimates at $3.7 billion.