Consortium mounts takeover bid for shopping centre owner
Shares in Intu rocketed yesterday following confirmation that a consortium of investors is mounting a multi-billion-pound takeover of the shopping centre owner.
John Whittaker’s Peel Group is leading a group consisting of Saudi Arabia’s Olayan and Canada’s Brookfield in a bid to take control of Intu.
Mr Whittaker is deputy chairman of Intu and Peel Group holds around 26% in the shopping centre firm, while Olayan holds about 3.5%.
Shares in Intu rose almost 30% to 190.8p when the market opened, giving it a value of about £2.5bn.
Property companies British Land, Hammerson and Land Securities also saw their shares boosted on the back of the news.
Intu is behind 18 shopping centres across the UK, including the Trafford and Arndale Centres in Manchester and Metrocentre in Gateshead.
In Wales, it has a 50% stake in the St David’s Shopping Sentre in Cardiff, which provides more than 1.4 million sq ft of retail and leisure space, with an annual footfall of 38 million.
Its tenants include John Lewis, Marks & Spencer and Debenhams, and it has a market valuation of £319m.
Retail analyst Nick Bubb said: “At this level, despite the near £5bn of debt and the pressure on rental values, you’d think that buying Intu was a pretty cheap way into its two flagship assets, the Trafford Centre in Manchester (which is valued at £2.2bn gross) and Lakeside (which is valued at £1.3bn gross).”
Its shares have been under pressure since a £3.4bn takeover by rival Hammerson fell through earlier this year.
In an announcement after the close of trading on Thursday, Mr Whittaker’s group said: “The consortium’s consideration of the possible offer is at a preliminary and exploratory stage and no approach has been made to the board of Intu.”
Intu said it had not received an approach from the consortium, but added: “The board has formed an independent committee comprising all directors of Intu other than John Whittaker, who is connected to the consortium.”
“The independent committee will consider any approach from the consortium, if made, and a further announcement will be made if and when appropriate.”
The consortium has until November 1 to make a firm offer for Intu. sion.barry@walesonline.co.uk