Chapelfield owners Intu made increased offer of £2.8bn in takeover talks

Marco Green
Октября 21, 2018

The consortium initially offered 205p per Intu share on October 11, which was raised to 215p six days later, Intu said.

The company added that the consideration will be reduced by any dividends or other distributions declared, payable or paid prior to completion.

"In order to advance discussions regarding the possible announcement of a firm offer, the Independent Committee has resolved to grant the Consortium access to certain due diligence materials".

Shares in shopping centre group Intu jumped more than 14 per cent on Friday after a consortium of investors, led by property mogul John Whittaker, upped its takeover bid.

Whittaker already owns a 27 per cent stake in the company through investment fund Peel Group, while Olayan has a 2.6 per cent stake.

The consortium's valuation of Intu at £2.8bn is significantly less than what rival property giant Hammerson offered in April.

Hammerson considered paying £3.4bn before abandoning the deal.

'We struggle to see how the Intu board will be able to recommend a cash offer below 239p.

"Management has repeatedly maintained that its prime retail assets are resilient and trading well with negligible impact from wider occupier weakness".

But Klepierre said it would not make a formal offer because Hammerson "did not provide any meaningful engagement", while Hammerson had branded Klepierre's overtures "wholly inadequate" and "entirely opportunistic".

The potential acquisition comes eight years after Intu, then Capital Shopping Centres, bought Manchester's Trafford Centre from Peel, in a £1.65bn deal which saw Peel chairman John Whittaker take a 20% stake in the company and £75m in cash.

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