Simon Property offers $4.8 billion for CSC

By Daryl Loo

LONDON (BestGrowthStock) – Simon Property Group (SPG.N: ), in a struggle for control of Capital Shopping Centers (CSCG.L: ), has proposed a 425 pence per share offer valuing Britain’s biggest mall owner at about 3 billion pounds ($4.8 billion).

The offer represented a 16 percent premium to the price of shares CSC plans to issue to buy Trafford Center shopping mall in a deal announced on November 25, and a 26 percent premium to the November 24 close, the biggest U.S. mall owner said.

Shares in CSC, which owns 13 regional shopping centers in Britain, were up 3.2 percent at 409 pence by 0845 GMT.

“We should work together to announce a recommended offer, and would urge you (CSC) to listen to calls from your shareholders — many of whom we have spoken to — opposing the Trafford Center transaction or asking you to adjourn your forthcoming EGM,” U.S. mall owner Simon Property said.

CSC would not comment on the 425 pence offer.

Peel Group, set to take a near 20 percent stake in CSC through its sale of Trafford Center in Manchester to CSC, said on Monday that deal was for a long-term investment in CSC, and not for cash. The Trafford Center deal will be subject to a shareholder vote on December 20.

“425 pence is still only indicative — conditional on the Trafford Center purchase not proceeding at the EGM on Monday. We think it is probably still too little too late,” Nomura property analyst Mike Prew told Reuters.

The Trafford Center deal sparked a war of words between Simon Property and CSC, with CSC branding an earlier Simon Property proposal as “completely impracticable.

Simon Property, which owns 5.1 percent of CSC, said it had appointed Citi (C.N: ), Evercore (EVR.N: ) and Lazard (LAZ.N: ) as financial advisers and was finalizing a bridge loan facility of about 3 billion pounds to fund its offer.

“We are confident that, subject to successful completion of due diligence, we will be able to obtain sufficient resources to satisfy our proposal in full,” Simon Property said.

(Editing by Dan Lalor and Sinead Cruise)

($1 = 0.6301 pound)

Simon Property offers $4.8 billion for CSC