Investors up bid for Trafford Centre owner Intu to £2.8bn

Shares in Trafford Centre landlord Intu jumped more than 14% on Friday after a consortium of investors upped its takeover approach, valuing the company at around £2.8 billion.

Peel Group, the Olayan Group and Brookfield Property Group revised an initial proposal of 205p per share up to 215p, following engagement with Intu’s directors

Intu’s shares were trading as high as 203.9p on Friday morning.

The consortium will now be granted access to company documents for due diligence as it considers whether to make a firm offer.

The bidders must decide by November 1.

The current proposal would be reduced by any dividends paid by Intu prior to the completion of the deal, meaning the actual offer would be 210.4p per share or less.

The proposed acquisition price values the company at around £2.8 billion, significantly less than rival retail property giant Hammerson considered paying for the company before it abandoned a £3.4 billion approach in April.

David Brockton, analyst at Liberum, said: “We struggle to see how the Intu board will be able to recommend a cash offer below 239p.

“Management has repeatedly maintained that its prime retail assets are resilient and trading well with negligible impact from wider occupier weakness.”

Peel Group, which is owned by Intu deputy chairman John Whittaker, already holds a 26% stake of the company.