19th Oct 2018 07:35
LONDON (Alliance News) - intu Properties PLC confirmed on Friday it has received a takeover proposal from a consortium comprising Peel Group, Olayan Group, and Brookfield Property Group.
The group earlier in October said it was mulling a bid for intu, but the FTSE 250-listed retail property investor at that time said it had not yet received an approach. Peel and Olayan already hold a 29.9% stake in intu.
Dual-listed intu said it received a proposal from the consortium on Thursday last week of 205 pence per share in cash. A independent committee formed by intu - which does not include deputy chairman John Whittaker, as he is executive chairman at Peel Group - met to review the offer.
Following "further engagement", intu on Wednesday received a revised proposal from the consortium of 215p per share in cash, it said.
The terms of both the initial and revised proposals provide that the mooted consideration will be reduced by any dividends declared or paid by intu prior to completion of the deal. This includes intu's interim dividend of 4.6p per share, due to be paid in November.
Accordingly, the consideration under the revised proposal would be 210.4p per share. That price values intu at GBP2.85 billion. The stock closed at 177.70p on Thursday.
"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. A further announcement will be made when appropriate," intu said on Friday.
intu stressed that both proposals included a number of pre-conditions and there can be no certainty that these will be satisfied or waived, and there can also be no certainty any offer will be made.
The investor said it intends to release a trading update for the period from the start of July "as soon as practicable", which will include an updated independent valuation of the company's investment and development properties as at September 30.
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