Sprucefield owner’s shares tumble a third on back of withdrawn £2.8bn takeover bid
SHARES in the owner of shopping malls including Sprucefield Retail Park have tanked after suitors pulled a £2.8bn takeover bid.
Intu Properties, which also owns the Arndale Centre in Manchester and Gateshead’s Metrocentre, saw shares fall by more than a third after a consortium of bidders pulled the proposed deal, blaming economic uncertainty and market volatility.
Intu said market conditions meant the consortium — led by John Whittaker’s Peel Group — could not continue with its proposed offer within the timeframe set out by City takeover rules.
The company added the decision was due to “uncertainty around macroeconomic conditions and the potential near-term volatility across markets”. It is
the second failed takeover attempt for Intu after Hammerson abandoned a £3.4bn approach in April.
It comes despite a number of extensions to the takeover timetable since the consortium, comprising Peel Group, Olayan and Brookfield Property, tabled a £2.8bn offer in October.
Peel already has a 27.3% stake in Intu.
Mr Whittaker, chairman of the Peel Group, said: “We remain fully committed to Intu Properties as a long-term strategic shareholder, as demonstrated by our participation in the consortium’s possible offer.”
Intu said it planned to continue investing in its shopping centres but would lower investor dividend payouts in the shortterm given the reduced pool of potential buyers and “challenging” asset-disposal potential.
It added that the board would re-engage with major shareholders, including Peel, and complete the search for a successor to its chief executive.
Intu said: “Whilst market sentiment towards retail and retail property remains negative, Intu is confident of its commercial prospects.”