Canadian group Brascan has tabled a 270 pence per share cash offer for Canary Wharf plc, valuing the Docklands development company at about £1.58bn.
Brascan, which is one of the biggest landlords in Manhattan, said it has received irrevocable undertakings to accept the offer in respect of 17.9% of Canary Wharf shareholders.
Canary Wharf has already agreed a 265 pence per share bid from a consortium led by the US Bank Morgan Stanley.
Under the proposed deal, Brascan said, Canary Wharf shareholders can opt for a share alternative in a new company, to be called Thames River Office Properties plc, in lieu of 25 pence in the cash offer.
Brascan said its proposal values Canary Wharf at an enterprise value of approximately $5.26bn, based on Canary Wharf´s net debt of 3.68bn.
In response, Silvestor, the Morgan-Stanley led consortium, said it was considering its options and urged shareholders to take no action.
Source: Freeman News