LONDON: Songbird Estates shareholder Madison International Realty plans to accept Qatar Investment Authority’s (QIA) offer for the British property company, the sovereign wealth fund behind the move said.
The offer of 350 pence per share for the owner of London’s Canary Wharf financial district was launched to Songbird shareholders by QIA and US investor Brookfield Property Partners on Thursday.
The hostile move followed Songbird’s rejection of an initial £2.2bn ($3.43bn) approach, saying it did not reflect the full value of the company or its growth potential. Songbird has yet to formally reject the improved terms.
In a statement yesterday QIA said that Madison had written a letter to Songbird saying it intended to accept the offer before its closing date. Madison holds a total of 18,627,054 Songbird shares, representing approximately 12 percent of Songbird’s shares in free float and 2.5 percent of Songbird’s issued ordinary share capital.
Taken together with backing from fellow shareholder Third Avenue Management, QIA has so far received public support from holders of about 28 percent of Songbird’s free float, it said.
The Canary Wharf financial zone was established about 25 years ago on former docks and is in a Songbird portfolio that includes part ownership of the landmark “Walkie Talkie” skyscraper in the City, London’s traditional business area.
A revival in London’s office property market and Canary Wharf’s expansion plans have stirred interest in Songbird.
Canary Wharf is preparing to start work on two major developments: a 60-storey tower with the first residential property on the estate and a 20-acre waterside site with 3,100 homes and office buildings, as well as a school and more shops. Reuters
