Shares in UK developer Minerva fell as much as 50% on Friday after Limitless, the development arm of Dubai World, pulled the plug on its unsolicited bid for the company.
Shares in UK developer Minerva fell as much as 50% on Friday after Limitless, the development arm of Dubai World, pulled the plug on its unsolicited bid for the company.
Back in July Limitless offered to acquire Minerva for 160 pence in cash. The market remained sceptical a deal would be signed and the share price lingered at a level significantly lower than the indicative bid price.
Minerva said in its presentation of its annual results last week that the discussions were 'ongoing' and that the due diligence was 'substantially complete'. But the announcement from Limitless on Friday that it was not proceeding with the offer sent Minerva's share price tumbling from 75.90 pence to 35 pence at the close of trading.
Limitless said it a short statement: 'As a result of being unable to obtain the necessary consents on terms satisfactory to Limitless, Limitless announces that it no longer intends to make an offer for Minerva.' The Dubai company said it reserved the right to make an offer for Minerva in the future if there was a material change in circumstances or another company made an offer for Minerva.
Minerva stated in its results report that it did need the takeover by Limitless to go ahead in order to continue operating and it has cash reserves of £117 mln. Minerva owns three major development schemes in London. Two of the developments, St. Botolphs and The Walbrook, are office schemes in the City of London and the third is Park Place in Croydon, the largest shopping centre scheme in the UK. None of the schemes are income-producing.
