Bernerd to up the ante at Chelsfield
Sunday 04 January 2004
Elliott Bernerd, the chairman of Chelsfield, is close to making a formal offer of almost £900m to take the property company private.
The move is expected to be made in the next fortnight, after months of negotiations with Chelsfield's non-executive directors, led by Sir Bruce MacPhail.
It is understood the cash offer will be between 310p and 320p a share. But Mr Bernerd is considering sweetening his bid by including a small stake in the business once it has gone private.
The offer isn't expected to be tabled this week, as Sir Bruce is on holiday in Kenya. Mr Bernerd, who already owns 12.1 per cent of Chelsfield, has secured backing from HBOS bank, which will provide debt finance.
The veteran property tycoon has already won the support of shareholders controlling around 30 per cent of the company.
However, the non-executive directors rejected an offer of 305p earlier this month. The non-executives then, in effect, invited rival bids for Chelsfield, which owns Went- worth golf course.
There was speculation that Gerald Ronson, the property tycoon who controls Heron International, and Donald Gordon, the head of Liberty International, would bid. But well-placed sources revealed that the non-executive directors had now resigned themselves to the fact that a revised bid from Mr Bernerd was the most likely option.
Mr Bernerd, 58, will, however, need to pitch his bid carefully. Chelsfield's shares closed at 306.5p on Friday. Some shareholders want to add a decent premium to the price to reflect the value of Chelsfield's future property developments, such as west London's huge White City scheme.
Chelsfield secured financing for the £1.2bn mixed-use White City redevelopment from the German fund GCI last week. The fund will pay for the initial construction phase in return for a 50 per cent stake in the completed development.
Mr Bernerd founded Chelsfield in 1986 and floated it seven years later for £200m after the property crash.
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Paralysed man Darek Fidyka walks again after treatment by British doctors on brink of 'cure'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...