Capital & Counties still in talks about possible demerger

Capital & Counties confirmed on Monday that it continues to advance preparations for a possible demerger.

Responding to press speculation, the property investment and development group said it is considering a number of proposals regarding its interests in Earl's Court.This includes discussions with Hong Kong-based property developer CK Asset Holdings Limited regarding the sale of most of its stake in Earl's Court Properties, excluding the Lillie Square joint venture.

"The board will evaluate the terms of any proposal against the merits of a demerger and other options," it said.

The company said there is no certainty a transaction will proceed and that any transaction would be expected to be subject to closing conditions.

Further announcements will be made in due course as appropriate.

CapCo announced back in May that it was considering a demerger that would result in two separately-listed businesses based around its central London estates of Covent Garden and Earl's Court. It said at the time that if a demerger was pursued, it would be formalised by the end of the year.

At 1508 GMT, the shares were up 6.1% to 270.10p.