Freeport, a UK developer and operator of retail outlet shopping centres in Europe, has backed a £155.3 mln (EUR 227 mln) offer from private equity firm Carlyle. The announcement of the 410 pence cash offer from CEREP Investment I SARL, which is owned by Carlyle, came as a surprise to the market as Freeport announced last month that talks between the parties had broken down.
Freeport, a UK developer and operator of retail outlet shopping centres in Europe, has backed a £155.3 mln (EUR 227 mln) offer from private equity firm Carlyle. The announcement of the 410 pence cash offer from CEREP Investment I SARL, which is owned by Carlyle, came as a surprise to the market as Freeport announced last month that talks between the parties had broken down.
Investors who hold just under 50% of Freeport backed the deal even though it was lower than the 435 pence -a-share the two sides were reportedly discussing at the end of 2006. The investors who are supporting the new offer include Laxey Partners, Guinness Peat and Schroder Investment Management.
Once focused on the UK, Freeport's main activity now is operating and developing outlet shopping and centres in Europe. Its key assets in continental Europe are in Lisbon, eastern France, the Czech Republic and Sweden.
In its statement on Monday announcing the proposed acquisition, Carlyle said: 'Freeport disposed of its UK assets in 2004 and 2005, and is struggling with developing operations in continental Europe. The acquisition provides Freeport with The Carlyle Group's specialised experience in running designer outlet villages.'