Civitas Social Housing REIT to delist on 4 August following takeover

investmentweek.co.uk:

CK Bidco said it had been reviewing the possibility of maintaining the REIT status of Civitas following completion of the offer.

The move comes after the offer made by the Hong Kong-based property developer was declared unconditional on 26 June. As of today (6 July), the company had obtained over 75% or more of the voting rights of Civitas. 

In a stock exchange notice, CK Bidco said it had been reviewing the possibility of maintaining the REIT status of Civitas following completion of the offer. 

Civitas Social Housing REIT agrees to £485m take-private offer

The company is currently in the process of making an application to list on the International Stock Exchange of Jersey to satisfy the relevant REIT requirement, but said «there can be no certainty» that the listing will be achieved or maintained.

«Given the nature and complexities of the REIT rules, some of which relate to matters outside the control of CKA and CK Bidco, there can be no certainty that Civitas will remain a REIT following completion of the offer,» it said. 

«If Civitas ceases to be a REIT under the UK REIT regime, Civitas will then become subject to UK corporation tax across all its UK taxable activities, including its property rental business.» 

Civitas Social Housing REIT shifts terms of takeover deal to achieve 'unconditional' offer

This would also result in any distributions received by Civitas shareholders, which arise from activities outside the REIT regime, to be considered an ordinary dividend, as opposed to a property income distribution.

On 9 May, the Civitas board said it had agreed to a recommended all-cash offer for the entire issued capital of the trust from CK Asset Holdings.

The bid, made by the developer's wholly owned indirect