Merry Hill owner Intu gives takeover group more time
A consortium attempting to take over shopping centre giant Intu – owner of Merry Hill – has been granted more time to make a firm offer or pull out of the £2.8 billion deal.
The Takeover Panel said today that the consortium, led by John Whittaker's Peel Group, now has until 5pm on November 15 to either put up or shut up.
Intu is behind 18 shopping centres across the UK, including the Trafford and Arndale Centres in Manchester, Lakeside in Essex and Metrocentre in Gateshead.
Earlier this month, Peel Group – headed by Intu's deputy chairman, the property billionaire John Whittaker – Olayan and Brookfield Property tabled a £2.8 billion offer for Intu.
The consortium has been granted access to company documents for due diligence as it considers whether to make a firm offer.
"In response to a request from the consortium to extend the above deadline to enable continued discussions, the board of Intu requested that the panel extend the deadline referred to above with respect to the consortium.
"Accordingly, an extension has been granted," Intu said.
Between them, Peel Group and Olayan Group already hold 29.9% of Intu.
The proposed acquisition price values the company at around £2.8 billion, significantly less than rival retail property giant Hammerson considered paying for the company before it abandoned a £3.4 billion approach in April.
The news comes a week after Intu said the value of its shopping centres has fallen amid difficult retail conditions.
The group said its net asset value fell three per cent in the third quarter, reflecting "current negative investor sentiment towards UK retail property".
Intu's portfolio was valued at £9.58 billion as at September 30.
