Canary Wharf's owner Songbird Estates has rejected a joint takeover bid from Qatar's sovereign wealth fund and Brookfield Property Partners as too low.
Canary Wharf's owner Songbird Estates has rejected a joint takeover bid from Qatar's sovereign wealth fund and Brookfield Property Partners as too low.
The Qatar Investment Authority and Brookfield came forward earlier this week with a possible offer for Songbird of 295 pence per share in cash, which the company has 'unanimously' rejected on the grounds that it materially undervalues the business.
The bid values Songbird at £2.18 bn (€2.8 bn) and compares to a share price on the day prior to the announcement of 320 pence a share.
'This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets,' commented David Pritchard, independent chairman of Songbird. 'The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million sq ft development pipeline, the largest in London.'
Songbird owns around 70% of Canary Wharf Group which is the majority owner of the east London financial centre.
The company announced on Thursday that it had received a joint takeover approach from shareholder Qatar Investment Authority, which already owns 28.6% of the company's share capital. Brookfield holds 22% of Canary Wharf Group.
Songbird’s portfolio is valued at £6.28 bn and comprises 18 completed properties totalling 6.9 million sq ft with an occupancy rate of 97%.
The Qataris have already invested in Canary Wharf over the past few months. In June, a consortium including China Life Insurance and QIA snapped up Clifford Chance's headquarters in the financial district for £795 mln (€1 bn).
China Life Insurance took a 70% share in the asset, while Qatar Holding - part of the Qatar Investment Authority - bought 20%. Canary Wharf Group retained a 10% stake as well as the asset management of the property.
