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 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
The Hubble Space Telescope's amazing journey 25 years on
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
Earthworms rain down from skies over Norway, puzzling scientists
18th century sex toy found in 'toilet of sword fighting school' in Poland
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
If I’m being racially abused I don’t need a white stranger with a saviour complex to rescue me
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Russian warships in English Channel 'to conduct anti-aircraft and anti-submarine military drills'
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...