Simon Property Group (SPG) has made a £2.9 billion indicative takeover offer for Capital Shopping Centres (CSC), it was announced today.
CSC, which owns 13 UK shopping centres totalling over 14.1 million sq ft, has been expecting a move by SPG but the move has been hastened by the property group’s proposed purchase of the Trafford Centre.
That deal would have left Trafford Centre owner Peel Group with a 25 per cent share of CSC, and SPG has stipulated as part of the takeover attempt that this deal does not go through.
SPG currently owns five per cent of CSC’s shares.
In a statement released following the offer, CSC said: “The board of CSC is meeting today to consider its response to the latest letter and a further announcement will be made following that meeting.
“Shareholders should be aware that there is no certainty that an offer will be made nor as to the terms upon which any such offer may be made.”
SPG has offered 425p per share to CSC, which is a premium of eight per cent on yesterday’s closing price of 393p.
A £3 billion bridge loan is being arranged by SPG to finance the deal, and while it desires a co-operative process it does not discount a hostile takeover.
David Simon, SPG Chairman, said: “Our interest in making an offer for CSC is, of course, not new. By making this offer on the terms outlined in this letter, we are confident that we have now answered any objections you have previously expressed.
“We believe that we should work together to announce a recommended offer, and would urge you to listen to calls from your shareholders - many of whom we have spoken to - opposing the Trafford Centre transaction or asking you to adjourn your forthcoming EGM.”