Civitas Social Housing PLC (LSE:CSH) has reduced a minimum shareholder voting threshold in order to get the social housing REIT’s £485mln take-private bid from CK Asset Holding over the line.
The percentage of voting rights required has been waived down from 75% to 50%, effectively making the offer unconditional given CK Asset Holdings’ acquisition of over 60% of voting rights.
According to a Friday press release, “the amended acceptance condition has been satisfied” and Citivas is likely to be removed from trading on the London Stock Exchange.
Any remaining shareholders will effectively become minority shareholders in a majority-controlled private entity without access to market liquidity, and may be unable to sell their stake barring an extended offer from CK Asset Holdings.
Should CK Asset Holdings manage to acquire more than 90% of outstanding shares, the Caymans-registered property developer will compulsorily take control of the remaining shares.
Civitas began shedding market value following an August 2021 short-selling attack from the ominously named alternative investment manager Shadowfall Capital.
Shadowfall denounced Civitas’ business model, property transactions, relationships with directors and dividend policy.
Share plummeted as much as 50% since the report, although the announcement of CK Bidco’s all-cash offer for the group on May 9 of this year saw shares recover some lost ground.
At the time of writing, Civitas shares were changing hands at 80p, around a third less then their all-time high.