Australians join Reubens in Â£2bn bid for Chelsfield
Tuesday 12 October 2004
The global shopping centre owner Westfield is teaming up with fellow Australian developer Multiplex and the billionaires Simon and David Reuben to carve up the British property group Chelsfield in a deal worth £2.1bn including debt.
Under the offer, to be made formally by the end of the week, Westfield, a joint venture of Multiplex and the Reuben brothers will make a combined cash bid of £585m.
The deal will give Westfield and the Multiplex/Reuben venture control of London's White City mall, which Chelsfield is building. It is expected to become London's largest retail centre.
Merry Hill, a shopping centre near Birmingham owned by Chelsfield, is another lucrative asset.
Under the agreement, Chelsfield's assets, including stakes in eight shopping centres and six retail development sites, would be split between the investors.
Including Chelsfield's debt, the joint bid will be worth £2.1bn. Westfield will invest £1.2bn while Multiplex and the Reubens' vehicle Aldersgate, which already owns 35 per cent of Chelsfield, will split the remaining £900m 50-50.
The Reubens, born into an Iraqi-Jewish family and raised in Bombay, have accumulated a fortune from metal trading and property.
They invested in Chelsfield after knowing Elliott Bernerd, the property group's founder and chairman, as a friend for some years.
The joint bid follows Westfield's solo £585m cash offer and avoids a costly bidding war with Multiplex. A source close to the company said: "It makes it a lot easier for Westfield to have a successful outcome. They have the major shareholders on board."
Multiplex and Aldersgate collectively own about 40 per cent of Chelsfield. HBOS, which holds 13 per cent, and Mr Bernerd, with 11 per cent, have said they would accept the proposed offer.
The deal comes four months after Mr Bernerd took the company private for £2bn. By teaming up with Multiplex, Westfield gets hold of Chelsfield's retail assets without having to buy the entire company.
But Westfield said that if the joint bid proposal does not proceed, it will push ahead with its initial £585m cash offer. It would then also sell Chelsfield's non-retail assets, including office developments and a stake in the Wentworth golf course, a source close to Westfield said.
Under the joint bid proposal, Multiplex hopes to sell Wentworth at a premium to its book value.
- 1 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...