Chapelfield owners Intu made increased offer of £2.8bn in takeover talks

Darnell Taylor
October 21, 2018

Shares in shopping centre group Intu jumped more than 14 per cent on Friday after a consortium of investors, led by property mogul John Whittaker, upped its takeover bid.

"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")".

Intu shares, which have taken a battering this year, rose nearly 30 per cent to earlier this month as news of the possible takeover emerged - adding £550million to its value.

Intu confirmed on 11 October 2018 it received an indicative proposal from the consortium of 205 pence per share in cash, and the independent committee formed by Intu and its financial advisers met to "consider the indicative proposal".

The current proposal would be reduced by any dividends paid by Intu prior to the completion of the deal, meaning the actual offer would be 210.4p per share or less.

Shares in Intu were up 23.6p to 201.3p this morning.

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"Intu's previously recommended bid from Hammerson was predicated on the upside shareholders could still realise as part of an all-share combination".

Intu is behind major shopping destinations such as Manchester's Trafford Centre and the Metrocetre in Gateshead, among others.

Liberum repeated a "sell" rating and 145p price target on Intu shares.

That's higher than the consortium's initial offer of 205p, but falls short of the £3.4billion takeover offer that was tabled and then abandoned by Bullring owner Hammerson earlier this year.

The potential acquisition still at a "preliminary and exploratory stage", and the consortium will be required to confirm whether or not it is making a firm offer by 1 November.

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