Shopping centre owner intu has said today ( Thursday 29 ) that the group led by its Deputy Chairman John Whittaker has dropped plans to make a takeover offer for the company.
Intu said in a statement:
“Given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the consortium is not able to proceed with an offer within a timeframe which is manageable.”
Whittaker, who is already Intu’s largest shareholder, had long been linked to a potential takeover of the company.
Full statement for investors:
On 4 October 2018 a consortium comprising the Peel Group (‘Peel’), the Olayan Group and Brookfield Property Group (together the ‘Consortium’) announced they were in the preliminary stages of considering a possible cash offer for intu. The Board of intu formed an independent committee (the ‘Independent Committee’) comprising all directors of intu other than John Whittaker, who was connected to the Consortium, to consider any approaches from the Consortium.
Following negotiations in which an indicative proposal from the Consortium of 200.4 pence per share was increased to a revised indicative proposal of 210.4 pence per share (exclusive of the 4.6 pence interim dividend which has since been paid), the Independent Committee resolved to grant the Consortium access to certain due diligence materials on 19 October 2018.
Good progress was made with the Consortium over the following weeks, with three extensions to the original firm offer deadline of 1 November 2018 made to enable them to continue their work, the last to 5.00 pm on 30 November 2018.
The Consortium confirmed to intu on 21 November 2018 that its legal, tax, accounting and commercial due diligence was largely complete and that nothing had arisen from its due diligence workstreams that would lead it to alter the terms of its revised indicative proposal of 210.4 pence per share (exclusive of the 4.6 pence interim dividend which has since been paid).
However, the Consortium has announced today that, given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the Consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the Code timetable.