Bidding groups for McCarthy & Stone strike deal |
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Published
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Fri, 01 Sep 2006 12:40
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LONDON: A consortium led by the Bank of Scotland has forged a deal with property tycoon Vincent Tchenguiz in the bid to acquire housebuilder McCarthy & Stone, ensuring that he does not wreck its chances.
The consortium, Mother Bidco, has prominent property investor brothers David and Simon Reuben and retail entrepreneur Tom Hunter as the other participants. It said under the terms of the deal, Tchenguiz's Rock Acquisitions will have the rights to ground rents on properties developed by McCarthy & Stone and house manager income up to a year after completion of the deal.
Tchenguiz will also be entitled to take a 25-million-pound stake in the consortium in the event that it wins the bid. In return, Rock Acquisitions has committed not to make a rival offer for the company or to join a third-party offer for a period of 12 months.
McCarthy & Stone had agreed a 1.1 billion pound offer from Mother Bidco on 1 August, withdrawing its support for a lower, rival offer from Mars Bidco, a group comprising Barclays Capital and private equity firm Permira.
Analysts, however, say the problems for Mother Bidco are not yet over. Since McCarthy & Stone's shares are traded consistently above Mother Bidco's offer of 1,075 pence a share, there could be another bidder on the scene.
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McCarthy & Stone backs £1 billion offer from Barclays Capital and Permira 