This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/jan/28/canary-wharf-qatar-brookfield-sale-london

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Canary Wharf to be bought by Qatar Investment Authority Canary Wharf to be bought by Qatar Investment Authority
(35 minutes later)
The owner of Canary Wharf, Songbird, has admitted defeat in its battle against a £2.6bn bid from the Qatari Investment Authority and Canadian property investor Brookfield, saying its three major shareholders intend to accept it. This means the Qatari fund can add east London’s financial district, with its cluster of towers, to a string of other prized assets, including Harrods and the Shard. Canary Wharf is to be bought by Qatar’s sovereign wealth fund and Canadian investor Brookfield Properties for £2.6bn, after Songbird, the owner of the Docklands estate, admitted defeat.
The Songbird board, chaired by David Pritchard, said it would recommend the offer to smaller investors, ahead of Thursday’s deadline, once holders of 90% of the shares have accepted the terms, making the offer unconditional. Songbird directors who own shares would also then accept for their own holdings. Ahead of Thursday’s deadline, Songbird said its three major shareholders intend to accept the offer, and once this happens it will drop its resistance and recommend the offer to smaller investors.
This means the Qatari fund can add east London’s financial district, with its cluster of towers, to its portfolio of prized assets, including Harrods and the Shard. Songbird shares rose 6.5% to 342.25p on the surprise announcement.
Songbird directors who own shares will also accept for their own holdings. Non-executive directors David O’Connor and Alex Midgen, who were appointed by the Glick shareholders, have stakes that are worth £1.9m and £390,000 respectively at the 350p offer price.
Qatar, Songbird’s biggest shareholder with a 28.6% stake, and Brookfield have been trying to gain control of the property company since November.Qatar, Songbird’s biggest shareholder with a 28.6% stake, and Brookfield have been trying to gain control of the property company since November.
The backing from New York investor Simon Glick, the China Investment Corporation and Morgan Stanley, the three biggest shareholders after the Qatari fund, means that QIA and Brookfield have secured 85.6% support. The backing from New York investor Simon Glick (with a 26% stake), the China Investment Corporation and Morgan Stanley, the three biggest shareholders after the Qatari fund, means that QIA and Brookfield have secured 85.6% support.
Songbird owns the bulk of Canary Wharf Group, the owner of the Docklands estate. Songbird owns the bulk of Canary Wharf Group, the owner of the Docklands estate. It is expanding for the first time since the banking crisis with plans for 3,100 homes at Wood Wharf at its eastern edge. Songbird also owns 50% stakes in the Walkie Talkie skyscraper in the City and the Shell Centre on the South Bank, which it is redeveloping with QIA subsidiary Qatari Diar.
It is expanding for the first time since the banking crisis with plans for 3,000 homes at its eastern edge. Songbird also owns a 50% stake in the Walkie Talkie skyscraper in the City and the Shell Centre on the South Bank, which it co-owns with QIA subsidiary Qatari Diar. Songbird, chaired by David Pritchard had hoped to find another acquiror willing to offer more but talks with several parties came to nothing, partly due to the company’s complex ownership structure. The firm maintained that the final offer of 350p a share, up from the initial approach of 295p, was too low, and formally rejected the terms on 12 January. An independent valuation carried out in November put Songbird’s value at 381p a share.
Songbird held talks with other parties about a higher offer but they have come to nothing. The company maintained that the final offer of 350p a share, up from the initial approach of 295p, was too low, and formally rejected the terms on 12 January. An independent valuation carried out in November put Songbird’s value at 381p a share. Minority investors Third Avenue Management, Madison International Realty and EMS Capital have already indicated their willingness to sell. Songbird is likely to to be de-listed from the stock market following the takeover.
Minority investors Third Avenue Management, Madison International Realty and EMS Capital have already indicated their willingness to sell.
The QIA stepped in with the China Investment Corporation to rescue Songbird in 2009 when the business came close to collapsing under its debt.The QIA stepped in with the China Investment Corporation to rescue Songbird in 2009 when the business came close to collapsing under its debt.
Sir George Iacobescu, chairman of Canary Wharf Group, and the rest of the management will stay on. A source from the group said: “It is still very much business as usual and the company will continue its development drive.
“QIA and Brookfield have expressed their appreciation of the achievements of Canary Wharf as a company, its management and its assets. George has been assured by the potential new shareholders of their full support for the group’s business plan and first rate staff.
“He and the team are looking forward to working with them during what will be one of the busiest and most successful phases of Canary Wharf so far.”