Simon pushes for due diligence access to CSC

Simon Property Group (SPG) has called for due diligence access to Capital Shopping Centres Group (CSC) to enable it to proceed with a EUR 3.4 bn offer for the UK-listed regional mall owner.

SPG made the request after the board of CSC announced on Wednesday that it was rejecting SPG's indicative offer. SPG already hold a 5% stake in CSC.

In the latest in a series of letters from SPG, David Simon, chairman and CEO of SPG, welcomed CSC's decision to adjourn its proposed EGM until late-January. Initially, CSC shareholders were to vote on 20 December in relation to CSC's plan to acquire the Trafford Centre in Manchester for EUR 1.9 bn in shares and debt assumption.

SPG opposes the acquisition, saying it overvalues the centre and would give Peel Group, the vendor of the Trafford Centre, a 25% stake in CSC and a seat on the board without extracting a premium.

David Simon said that he believed the indicative offer of 425 pence per share 'represents a full and fair valuation for CSC'. He said the offer is a substantial premium to CSC's latest NAV and to the price of 367 pence, at which CSC is proposing to issue 25% of its shares to Peel Group.

SPG noted that CSC publicly stated on 8 December that it would not provide non-public due diligence information as SPG had not made an indicative offer.

'Simon has now made an indicative offer, and we expect CSC to provide the information requested so that Simon is in a position to make a formal offer for the benefit of CSC's shareholders. Simon stands ready to commence due diligence immediately,' Simon wrote.