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Shaftesbury and Capco advisers take home nearly £70m from £5bn merger


// Advisers for Shaftesbury and Capco are expected to pocket nearly £70m following £5bn merger
// Capco’s advisers include bankers Rothschild, UBS and Jefferies, while Evercore and Blackdown are supporting Shaftesbury

The advisers for Shaftesbury and Capco – two of the West End’s biggest landlords – will pocket nearly £70 million in fees following the £5 billion merger.

Shaftesbury, which owns parts of Soho and Carnaby Street, is paying £35.7 million to bankers, lawyers, legal and communications advisers, while Capco, which owns Covent Garden, is paying £33 million.

Capco’s advisers include bankers Rothschild, UBS and Jefferies, while Evercore and Blackdown are supporting Shaftesbury.

READ MORE: West End landlords Shaftesbury and Capco agree £5bn merger

The merger faces the hurdle of passing a shareholder vote on July 29.

Two of Shaftesbury’s investors, Royal London Asset Management and Investec, have previously raised concerns about whether it is in the best interest of shareholders.

However, Norges Bank Investment Management, the Norwegian sovereign wealth fund, is expected to vote in favour of the deal. It holds 25% and 15% in Shaftesbury and Capco, respectively.

The enlarged company portfolio would span 670 buildings, comprising 2.9 million sq ft and 2,000 commercial and residential units.

This review is expected to take 12 months following completion and could lead to a reduction of approximately 30% in headcount across the combined group.

However, some senior members of staff are poised to receive bumper pay rises and bonuses worth up to 25% of their salary.

As part of the deal, Shaftesbury will own 53% of the newly-combined company, named Shaftesbury Capital, while Capco shareholders will control 47%. Following completion, the companies are expected to cut £12 million from its annual costs.

Ian Hawksworth, Capco’s chief executive, will become boss.

Brian Bickell, who has been Shaftesbury boss for more than ten years, will step down once the deal is complete.

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