Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Songbird Estates says £2.6bn Qatari-led offer 'undervalues' company

Canary Wharf Group owner Songbird Estates has told its shareholders to take no action in response to a Qatari-led takeover bid worth £2.6bn.

The firm said the offer of £3.50 per share by Qatar Investment Authority and US investor Brookfield Property Partners undervalued the company.

QIA and Brookfield formally published their final offer on Tuesday and Songbird said it would respond within the next 14 days.

Songbird independent chairman David Pritchard said the offer “does not reflect the full value of the company, its unique operating platform and future growth potential”.

He added: “Canary Wharf Group has put in place an unparalleled platform for continued long-term value creation at the unique Canary Wharf estate and elsewhere in London.

“With the commencement of four separate development projects delivering 22 buildings over the next five years, an overall development pipeline of more than 11m sq ft and a world-class management team, we believe that Songbird and Canary Wharf Group have an exciting future.”

QIA and Brookfield Property Partners said they already have commitments to the Songbird deal from three shareholders – Third Avenue Management, Madison International and EMS Capital – totalling around 32 per cent of the company’s free float.

But a deal would need the support of Songbird’s other major shareholders, which include Glick Entities (25.9 per cent), China Investment Core (15.8 per cent) and Morgan Stanley (8.5 per cent).

QIA already owns 28.6 per cent of Songbird and Brookfield Property Partners has a 22 per cent stake in the Canary Wharf Group.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.