Simon target's valuation 'out of reach' for Indianapolis firm

Back to TopCommentsE-mailPrintBookmark and Share

Capital Shopping Centres Group Plc, the U.K.’s biggest shopping mall owner, said it is worth as much as 625 pence ($9.64) a share to a bidder, almost 50 percent more than an offer from Indianapolis-based Simon Property Group Inc.

That valuation includes 89 pence a share that a bidder such as Simon should pay to reflect “the unique and strategic nature of CSC’s shopping centers,” the London-based company said in a statement Friday. It also takes into account Capital Shopping’s planned acquisition of the Trafford Centre mall in Manchester, England.

Last month, Simon made a conditional offer of 425 pence a share, valuing Capital Shopping at 2.9 billion pounds. The bid, which Capital Shopping has said is inadequate, was 13 percent higher than the U.K. company’s net asset value of 377 pence a share as of Nov. 1. It depends on Capital Shopping abandoning the Trafford Centre agreement.

“This gets us into the realms of the comical now,” said John Cahill, an analyst at Evolution Securities in London. “Capital Shopping has obviously had to take Simon more seriously, but this 625 figure is very high and would put it out of reach of Simon.” Cahill has a “sell” rating on Capital Shopping, which is unrelated to the bid, he said.

Capital Shopping was little changed in London trading at 417.4 pence as of 10:33 a.m., valuing the company at 2.9 billion pounds. The stock has climbed 24 percent since closing at 337.4 pence on Nov. 24, the day before Simon’s interest in Capital Shopping was disclosed.

U.K. regulators last month gave Simon until Jan. 12 to announce an intention to make a formal offer. Simon said on Dec. 29 that it got a 3 billion-pound loan to help it bid for Capital Shopping. The U.K. landlord owns four of Britain’s 10 biggest malls, including the Manchester Arndale and the Lakeside Shopping Centre in Essex.

Capital Shopping also said Friday that it altered the terms of the Trafford Centre acquisition. The company will issue 18 million fewer shares to Peel Group, the owner of the Manchester mall, for 400 pence each. Capital Shopping previously priced the shares at 368 pence. As a result, Peel Group would have a maximum stake in Capital Shopping of 23.2 percent, rather than 24.7 percent.

The Trafford Centre “is the best shopping center in the U.K. outside of London and the southeast,” Capital Shopping Chief Executive Officer David Fischel said in an interview. “Next Wednesday is the so-called put up or shut up date for Simon.”

Simon’s current proposal is “completely inadequate,” and shareholders should approve the Trafford Centre purchase at a meeting on Jan. 26, Fischel said.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1