Intu Properties PLC (LON:INTU), jilted at the altar this year by Hammerson PLC (LON:HMSO), has a new suitor.
The shopping centres property group is being put under the microscope by a consortium comprising The Peel Group, The Olayan Group and Brookfield Property Group to determine whether to launch a formal offer. Between them, the consortium members own around 30% of Intu.
READ: Intu terminates Hammerson deal, believes in its stand-alone commercial future
The consortium's consideration of the possible offer is at a preliminary and exploratory stage and no approach has been made to the board of Intu. The statement was made in response to a story in Estates Gazette about a bid.
???????? John Whittaker, billionaire owner of Peel Group, in takeover bid for Intu. https://t.co/hcQGgu4or1
— Neil Saunders (@NeilRetail) October 5, 2018
Intu confirmed it had not yet been approached by the consortium. It has formed an independent committee comprising all directors of Intu other than John Whittaker, who is connected to the consortium. The independent committee will consider any approach from the consortium if made.
Nick Bubb, the independent retail analyst, noted that Intu is currently valued at little more than £2bn.
“At this level, despite the near £5bn of debt and the pressure on rental values, you’d think that buying Intu was a pretty cheap way into its two flagship assets, the Trafford Centre in Manchester (which is valued at £2.2bn gross) and Lakeside (which is valued at £1.3bn gross),” Bubb said.
READ: Hammerson calls off Intu takeover, citing tough retail market and shareholder pressure
“Peel’s John Whittaker is, of course, the deputy chairman of Intu (having sold them the Trafford centre back in 2011), but Intu has equally powerful friends in South Africa, if it has the stomach for a fight, so it will be interesting to see what happens to the share price today, as the market waits for a formal bid to materialise,” Bubb concluded.
Shares in Intu were up 25% at 185.05p in early deals.
£INTU - Whittaker wanting (with Saudis and Brookfield) to take private should be no surprise for several reasons(dislike of public markets, private leverage), but tellingly Co House shows he restructured the holdcos to rapidly issue shares in Jul. Shorts + analysts wrong big time
— Paul H (@paulpalantiri) October 4, 2018