Bloomberg News

Minerva Accepts Bid That Values Developer at $324 Million

June 29, 2011

(Updates with closing share price in fifth paragraph.)

June 29 (Bloomberg) -- Minerva Plc, the second-largest developer in the City of London financial district, accepted a takeover bid by a group of funds that values the company at 202.6 million pounds ($324 million).

Funds advised by Area Property Partners (U.K.) Ltd. and a unit of DV4 Ltd. offered 120.5 pence a share, according to a statement today. That’s 54 percent more than the closing price of 78.5 pence on Jan. 13, the day before Minerva said it was in talks that might lead to a bid.

“We have conducted an extensive auction process over the past few months and the board has concluded that the offer is the most attractive proposal and provides certain value for Minerva shareholders,” Minerva Chairman Oliver Whitehead said in the statement.

Minerva has been the subject of takeover talk for almost three years. KiFin, the investment vehicle of Nathan Kirsh, abandoned a 50 pence-a-share bid for Minerva in January 2010 after failing to win support from the developer’s shareholders. That followed an unsuccessful attempt by Dubai’s Limitless LLC to purchase Minerva in 2008. Two of Minerva’s developments, the Walbrook and St. Botolphs, are in the City of London.

Minerva rose 2.8 percent to 120.75 pence in London trading, the highest since April 12, 2010. The shares have gained 52 percent this year.

Area Property Partners manages more than $11 billion of equity and has overseen investment in more than 500 deals with a total value of more than $50 billion, according to the statement.

Greenhill & Co. is advising Minerva, while Delancy Real Estate Asset Management Ltd. is acting for DV4.

The offer for Minerva was made through a new company called Jupiter Properties 2011 U.K. Ltd.

--Editors: Andrew Blackman, Jeffrey St.Onge

To contact the reporter on this story: Tim Barwell in London on tbarwell@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


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