Property fund manager Teesland has agreed to a £1.91 per share offer from Australian peer Valad for the remaining 28% of Teesland that Valad does not already own. The offer values Teesland at £240 mln (EUR 337 mln).
Property fund manager Teesland has agreed to a £1.91 per share offer from Australian peer Valad for the remaining 28% of Teesland that Valad does not already own. The offer values Teesland at £240 mln (EUR 337 mln).
Teesland’s second largest shareholder, Hedge fund Polygon Investment Partners, has already accepted Valad's bid. Polygon holds a 26% stake in Teesland and blocked an earlier bid by Valad to gain full control of Teesland with a £1.6 per share bid at the start of the year. Valad was left with a 72% stake, not enough to follow through on its plan to delist Teesland.
Teesland reported in June that its gross profit was down by half to just £5.9 mln from £12.8 mln a year before. The company warned last month that the property market in the UK 'continues to experience challenging investment conditions.' They company directors have now recommended the new offer by Valad as a means of providing shareholders with an opportunity to realise their investment at a premium. Six months after the acquisition of its stake, Polygon can realise £10.6 mln by selling its shares now.
Teesland is a European property fund and asset manager providing specialist services to a range of funds and institutions investing in real estate in the UK and in Western and Central Europe. The company manages some £4.2 bn of assets in ten main funds across the industrial/business, mixed commercial, retail and university housing sectors in both the UK and Europe.
