intu soars on potential takeover

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intu soars on potential takeover

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Published Date: 2018-10-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

intu soars on potential takeover

After being shunned by rival Hammerson in April, intu's shares jumped as much as 30% on Friday on renewed takeover prospects

intu properties surged on Friday on news that a consortium led by some of its biggest shareholders was preparing a cash bid to take it private. Shares in the UK shopping centre owner jumped as much as 30%.

In April, intu was jilted by rival property group Hammerson, which pulled out of a proposed £3.4 billion merger, under pressure from its shareholders due to a deteriorating outlook for the sector. Hammerson had put the bid for intu on ice pending a formal takeover offer from French rival Klépierre, which declined to make an offer after the two groups failed to agree on price.

In a statement, intu said it had noted the statement by the Peel Group, Saudi conglomerate the Olayan Group and Canary Wharf owner Brookfield Property Group but had not yet received an approach from the consortium. It said it had formed an independent committee comprising all directors of intu other than deputy chairman John Whittaker, whose Peel Group which owns a 27% stake in intu.

Under UK takeover rules, the consortium has to either announce a firm intention to make an offer by 1 November, unless it's granted an extension.

intu owns 17 shopping centres in the UK and Europe. Its net asset value per share was 309p at the end of June according to the group's interim results.

Its shares closed 23.5% up at R35.25 on Friday. Hammerson gained 2.5% to R85.72.





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