London-based developer Minerva has rejected an unsolicited takeover offer from KiFin, a company controlled by South African businessman Nathan Kirsh. Minerva's board described the 50 pence per share offer as 'an opportunistic and unwelcome attempt to acquire Minerva at a price which significantly undervalues the company and its future prospects'.
London-based developer Minerva has rejected an unsolicited takeover offer from KiFin, a company controlled by South African businessman Nathan Kirsh. Minerva's board described the 50 pence per share offer as 'an opportunistic and unwelcome attempt to acquire Minerva at a price which significantly undervalues the company and its future prospects'.
The board said it was focused on maximising the value of the existing portfolio after a downward valuation of 28.4% in the year to end-June. 'In particular, shareholders should be aware that the Company has been in discussions with a number of parties with respect to a disposal of its Wigmore Street, London property and has received offers which represent material premia to the book value,' the company added.
Minerva's share rose by more than 30% on Tuesday to 51 pence after KiFin announced the bid. The offer values Minerva at £84.5 mln and represents a premium of about 30.7% to the closing price of 38.25 pence on 16 November 2009. KiFin and its associates already own or control 48.2 million Minerva shares, or 29.9%, of Minerva's share capital.
Last week, the board of London-listed Rugby REIT urged its shareholders to reject an offer of 41 pence per share from Laxey's Laxey Terra Investments vehicle, saying it 'substantially undervalues' the company.
