The boards of both companies have agreed the deal in principal terms, with this now being put forward to shareholder approval.

This implies a value of 62.5 pence per share of Capital & Regional, representing a premium of approximately 21%.

A lower valuation of Capital & Regional’s portfolio informed this valuation. NewRiver’s commissioned report values the portfolio at £350m, lower than the initial valuation of £375m that Capital & Regional has been working with.

The announcement of the offer has been made as required by the Companies Act 2006.

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This offer would see Capital & Regional shareholders receive a dividend not exceeding 2.85 pence power share, with an interim NewRiver dividend of 3 pence per share once they became shareholders of the latter.

This is in relation to a record date of 27th September, with an additional dividend of 1.3 pence per Capital & Regional share potentially also available if these timings are met.

The boards of both companies argue this deal would result in £6.2m of cost-savings, with benefits to the balance sheet and complementary assets.

In total this deal would create a combined £900m retail portfolio.

Earlier this month, a planned takeover of Capital & Regional by Praxis collapsed. The two firms had been in talks since July.