TAKEOVER OFFER
Intu deal will almost double the size of Hammerson
There is talk of behind-the-scenes pressure from investors to initiate changes
Intu investors may be 15% richer after Wednesday’s announcement of Hammerson’s offer to buy Intu Properties, but those who have stuck with Intu since it was unbundled from Donald Gordon’s Liberty International — under its first incarnation as Capital Shopping Centres — have seen a rand return of just 5.6% since 2010 against 21.1% annualised growth from Capital & Counties (Capco), the second arm of the Liberty International empire and 19.1% from the UK Real Estate Investment Trust (Reit) benchmark. Insiders say that Gordon, whose family trust owns 7.69% of Intu and 7.26% of Capco, was not likely to make any changes to Intu’s management under CEO David Fischel, but talk is that there was behind-the-scenes pressure from investors to initiate changes. Investec Asset Management portfolio manager Peter Clark says: "Intu was in a tough position: the share price had gone down, NAV [net asset value] was heading down, the balance sheet was highly leveraged and there needed to be some out and ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.