Lakeside and MetroCentre owner Capital Shopping Centres (CSC) has rejected Simon Property Group’s £2.9 billion indicative takeover offer, which was announced this morning.
As a result the CSC board has revealed it will adjourn the emergency general meeting (EGM) planned for December 20th when the potential acquisition of Manchester’s Trafford Centre was set to be discussed.
The proposal, which valued the company at 425 pence per share, was described by the CSC board as “yet another attempt by Simon to frustrate the Trafford Centre acquisition” without suggesting a suitable alternative.
Simon’s interest in taking over CSC has long been public knowledge, but the potential new owner has stipulated as part of the bid that CSC does not acquire the Trafford Centre.
Five per cent of CSC’s shares are currently owned by Simon, and the company’s Chairman David Simon felt confident that today’s bid “answered any objections the CSC board has previously expressed”.
In response, CSC said the acquisition offer undervalued the business and suggested that the inclusion of the Trafford Centre in its portfolio “will significantly enhance CSC’s value”.
Today’s reaction statement added: “The board believes that CSC’s portfolio will generate long-term attractive returns for shareholders significantly superior to Simon’s cash proposal.”