Dubai government owned company to buy London Developer Minerva

Posted under General by Jermaine

London developer Minerva is likely to be bought by the Dubai government’s property company Limitless for £260m. Limitless’s offer of £1.60 cash per share, was being negotiated since many months before its acceptance by Minerva. Share price of Minerva zoomed by 66 per cent up 48p at £1.20.

Minerva had been struggling hard due to downturn in the property market in the last 18 months. The rising levels of debt and negative cash flows had hit it very hard.  Limitless, under the advice of UBS, made the final cash offer last week after prolonged negotiations on price with Minerva.

According to spokesperson of Minerva, the proposal contained several conditions including completion of due diligence and recommendations by the Minerva board. It further added that even after reaching agreement on other terms and preconditions it is not certain whether the offer will be forthcoming.
Limitless has reserved the right to increase the level of its offer in the event of competitive situation at the same time it would reduce the price offer if Minerva paid dividend to its shareholders.

Minerva trades at wide discounts but the strong bias towards the City of London has soured the stock.
Minerva’s big retail asset in Croyodon has also run in to difficulties in getting a good anchor tenant. But, Limitless, which is strongly supported by the sovereign wealth, considers Minerva as the big bet for the market.

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