Canary Wharf owner Songbird Estates says revised £2.6bn Qatar offer is not enough
Canary Wharf owner and takeover target Songbird Estates has said a revised offer of 350p per share made by the Qatari sovereign wealth fund late yesterday undervalues the company.
The board of Songbird said the new cash bid valuing the firm at £2.6bn “does not reflect the full value of the company, its unique position and future growth potential”, but it was still evaluating the proposal.
A joint venture between the Qatar Investment Authority and Brookfield Property Partners, it tabled the second bid after its original offer of 295p per share made in November was rejected.
The new bid is unlikely to please Songbird however. An offer “upwards of 400p per share” would be the only deal considered by Songbird, according to City A.M. sources in November.
In an update this morning, Songbird pointed out its pro forma adjusted net asset value was 381 pence per share as of 27 November, higher than the proposed offer, and that it will respond to QIA and Brookfield and report to Songbird shareholders “in due course”.
The Qataris already own a 28.6 per cent share of Songbird, whose investment portfolio is worth £6.3bn. Brookfield, meanwhile, owns a 22 per cent stake in Canary Wharf Group, after it vied with Songbird for control of the company in 2004.
Yesterday's bid from the Qatari group was squeezed in just ahead of the regulatory deadline.