Intu shares crash after possible company takeover falls through

SHARES in intu Properties nosedived by 39.2 percent on the JSE yesterday after a consortium considering a possible takeover of the company said it was unable to proceed with the transaction and intu announced plans to significantly cut its dividend payments in the short term.

intu’s shares closed yesterday at R20.80.

The company, a leading owner, manager and developer of UK malls with a growing presence in Spain, was the subject of the proposed offer from a consortium comprising the UK billionaire John Whittaker-owned Peel Group, Saudi Arabian-based Olayan Group and Canadian asset manager Brookfield Property Group.

intu said the consortium had announced it was unable to proceed with the offer within a time frame that was manageable within the confines of the Takeover Code timetable “given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets”.

This followed the consortium confirming on November 21 that its legal, tax, accounting and commercial due diligence was largely complete and nothing had arisen from its due diligence workstreams that would lead it to alter the terms of its revised indicative proposal of 201.4 pence (R35.74) a share. This was inclusive of the 4.6p interim dividend that had since been paid.

intu said it intended to substantially reduce the payment of dividends in the short term, starting with its 2018 final dividend that would normally be payable in June next year, “to provide additional funds to continue its investment programme.

In addition to its core development pipeline, intu said it continued to look at opportunities within its portfolio for alternative uses of its available land.

It said: “Initial work has shown the potential for around 5 000 residential units and nearly 600 hotel rooms, with more under active consideration.”