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.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...