Whittaker consortium makes a £2.9bn approach for Intu
A CONSTORTIUM led by billionaire property developer John Whittaker has taken a step closer to seizing control of shopping centre owner Intu by making an informal takeover offer that would value the company at £2.9bn.
Mr Whittaker, who is also Intu’s deputy chairman, approached the rest of the board with an informal offer of 205p per share on Oct 11, followed by a revised offer of 215p on Wednesday.
The consortium, which includes Mr Whittaker’s Peel Group, US asset manager Brookfield and Saudi conglomerate Olayan, had already confirmed it was considering a bid, but this is the first time details of a possible price have been disclosed. The news sent shares in Intu, which owns the Trafford Centre, Metrocentre and Lakeside shopping centres, up 12.5pc to close at 200p yesterday.
The offer is some way below the £3.4bn bid that rival Hammerson tabled for Intu last December. Between that deal collapsing in April and the consortium’s interest being declared this month, the takeover target lost about a quarter of its market value as shares fell to their lowest level in decades amid turbulence in the sector.
The 215p-per-share offer will be revised down following the payment of interim dividends worth 4.6p per share next month, leaving it worth about 210p. Intu has formed an independent committee – consisting of its board with the exception of Mr Whittaker – which will now open its books to scrutiny by the consortium to allow it to decide on whether to make a formal bid.
Under the City’s Takeover Panel rules, the suitors have until 5pm on Nov 1 to make a firm offer or withdraw.
Hammerson announced it would not pursue its takeover after five months of talks, citing torrid trading on Britain’s high streets and stiff opposition from some shareholders who warned the deal could “dilute” the company’s portfolio of sites. That left both Hammerson and Intu with advisory bills worth upwards of £10m and led David Fischel, Intu’s chief executive of 17 years, to announce his departure.