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Helical receives GBP 500mn takeover offer: the Times
Posted on Monday, 10 June 2019 11:43
UK-based property developer Helical confirmed it has received a number of take over offers in recent weeks from different parties and has hired JPMorgan to advise on the situation.
The company said that it always acts in the best interest of its shareholders and therefore has been open to engaging with interested buyers, including allowing due diligence to be conducted.
However, Helical said that to date all proposals have been at a significant discount, which the board believes did not reflect the true value of the business.
The news comes after the Sunday Times reported an unnamed US-based private equity firm had tabled a GBP 500.00 million offer for the commercial real estate contractor.
According to the paper, the deal valued Helical at a significant premium to its close of GBP 3.55 on 7th June 2019, which gave the group a market capitalisation of GBP 425.00 million; although, it was less than the company’s current net asset value of GBP 567.00 million.
Other London-listed property developers have struggled as of late, due to the uncertainty around Brexit, with the Sunday Times observing that the three largest of these businesses in the UK – Land Securities, British Land and Hammerson – have been trading at a large discount to the official values of their portfolios.
Helical, ran by Mike Slade who is due to step down as chairman next month, has offices in London and Manchester with its wholly-owned investment portfolio at a valuation of GBP 791.25 million at 31st March 2019.
Profit before tax in the 12-months to the same date rose 41.2 per cent to GBP 43.50 million from GBP 30.80 million, in the corresponding period of 2018.
In the year to 31st March 2019, Helical generated gross proceeds of GBP 167.00 million from the sale of investment properties and GBP 45.00 million from the disposal of development stock.
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