intu bid increased by consortium

A consortium comprising of the Peel Group, the Olayan Group and Brookfield Property Group, has upped its offer for intu, the shopping centre management company which owns Broadmarsh and Victoria Centre in Nottingham as well as intu Derby.

The consortium initially announced on 4 October 2018 that they were considering a possible cash offer for intu and then on 11 October 2018 intu received an indicative proposal from the Consortium of 205 pence per share in cash.

This offer has been revised to 215 pence per share, and it was today (19 October 2018) revealed that due to dividend payments, the offer would be 210.4 pence per share, valuing the company at £2.8 billion.

In a statement intu said: “The independent committee formed by intu (comprising all directors of intu other than John Whittaker, who is connected to the Consortium) (the “Independent Committee”) and its financial advisers met to consider the Indicative Proposal.

“Following further engagement, on 17 October 2018 intu received a revised indicative proposal from the Consortium of 215 pence per share in cash, subject to an adjustment for dividends as set out below (the “Revised Indicative Proposal”).

“The terms of both the Initial Indicative Proposal of 205 pence per share and the Revised Indicative Proposal of 215 pence per share provide that the consideration will be reduced by any dividends or other distributions declared, payable or paid by intu prior to completion including the interim dividend of 4.6 pence per share due to be paid on 20 November 2018 (with an ex-dividend date of 18 October 2018).

“Accordingly, should any offer on the terms of the Revised Indicative Proposal be forthcoming the consideration would be 210.4 pence per share and may be reduced further by any other dividends or other distributions declared, payable or paid by intu prior to completion.”

“Both proposals also included a number of pre-conditions and there can be no certainty (i) that any such pre-conditions will be satisfied or waived (ii) that any offer will be made or as to the terms of any such offer or (iii) that any offer, if made, will complete.

“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 intends to issue a trading update for the period from 1 July 2018 as soon as practicable, which will include the outcome of an updated independent valuation of the Company’s investment and development properties as at 30 September 2018.”