Songbird Estates board acknowledges that 93% of shareholders now want takeover
A Qatari-led bid to takeover Canary Wharf has won out, after the board of the organisation that owns the London business district, Songbird Estates, finally relented and approved the takeover.
In a statement on Friday the Songbird Estates board acknowledged that joint bidders the Qatar Investment Authority (QIA) and Brookfield Property Partners had succeeded in securing support from 65% of shareholders.
Combined with QIA and Brookfield鈥檚 existing shareholdings in Songbird, this took support for the offer to 93.4%.
The bidders had said the bid was likely to be declared 鈥渨holly unconditional鈥� by the regulatory deadline of 12 February and so on Friday afternoon Songbird鈥檚 board said it 鈥渘ow recommends that shareholders accept the offer鈥�.
The offer of 350p-per-share values Songbird Estates at 拢2.6bn.
Songbird鈥檚 board initially rejected the bidders鈥� approach in November and, when a formal offer was tabled the following month, advised shareholders to 鈥渢ake no action鈥�, saying the offer 鈥渟ignificantly鈥� undervalued the company.
But the bidders continued to amass shareholder support, including from the company鈥檚 three major shareholders - Glick, China Investment Corporation and a fund managed by Morgan Sindall - earlier last week, prompting Songbird鈥檚 board to relent and accept.
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