(Reuters) - Britain’s Unite Group (UTG.L) said on Thursday it was in advanced talks to buy fellow student accommodation firm Liberty Living from Canada Pension Plan Investment Board (CPPIB).
Unite would offer cash and stock that would make CPPIB a significant shareholder in the combined company upon deal completion, the company said.
“If the transaction goes ahead it will be priced on a NAV-for-NAV basis,” the company said. Liberty Living’s net asset value was 1.4 billion pounds as on Feb. 28, Unite said.
Unite said it expected part of the cash consideration to be funded through an equity placing representing no more than 10% of current share capital, adding that the proposed deal would deliver “material” earnings addition.
Shares of Unite were down 2.6% at 974 pence at 1525 GMT.
Reporting by Justin George Varghese in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila