What next for Chapelfield owner Intu as £2.8bn takeover deal falls through?
PUBLISHED: 08:56 29 November 2018 | UPDATED: 17:52 29 November 2018
The £2.8bn deal to buy Norwich Chapelfield’s owner Intu has been scrapped.
Intu said the market conditions meant the consortium - led by John Whittaker’s Peel Group - could not continue with the proposed offer within the timeframe set out in takeover rules.
Mr Whittaker, chairman of The Peel Group, said: “We remain fully committed to Intu Properties as a long-term, strategic shareholder, as demonstrated by our participation in the consortium’s possible offer.
“Intu’s portfolio of super regional and prime city centre shopping centres is trading strongly and benefiting from the retailer store rationalisation process that is currently under way in the UK.
“Physical retail continues to play a key role in all successful multi-channel retailer sales strategies and Intu’s national portfolio of centres enjoys some of the highest customer footfall in the country.”
The news will be a further blow to Intu, after it was revealed earlier this month that it would lose House of Fraser as a tenant in a number of locations - including Norwich.
Intu shares plunged 38% after announcing the deal’s collapse this morning.
Intu said: “Whilst market sentiment towards retail and retail property remains negative, Intu is confident of its commercial prospects.”