Reichmann sells remaining Canary Wharf stake

Paul Reichmann, the founder of Canary Wharf, has sold his remaining 6.5% stake in the company, marking the end of his 20-year involvement with the business.

Reichmann sold his remaining 38m shares to Brascan, the Canadian corporation that recently lost out to Morgan Stanley in the bid battle for Canary Wharf.

Although the price has not been disclosed, Reichmann’s stake is thought to have been worth £112m.

Brascan, which has been building its stake since losing the auction, now controls around 26.5% of Canary Wharf.

Reichmann still owns warrants to subscribe to around 43m shares, granted to him at the time of Canary Wharf’s stock market listing in 1999.

The warrants are held through IPC Advisors, a company controlled by Reichmann. They have a strike price of 375p, while others have a strike price of 450p.

Talks with Morgan Stanley to sell the warrants are believed to have begun, although a sale is not thought to be imminent. Morgan Stanley is offering up to £27.6m for the warrants.
Source: Freeman

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