Songbird Estates has conceded defeat in its battle to hold on to Canary Wharf, and reluctantly recommended that shareholders accept the offer from Canadian property investor Brookfield and Qatar’s sovereign wealth fund QIA.
Today’s recommendation comes only two weeks after Songbird told shareholders to reject the £2.6 billion offer on the grounds that it undervalued Canary Wharf Group’s existing assets, estate management possibilities and development potential.
While still insisting that this is the case, the board has been forced to change its stance after three major shareholders indicated that they intend to accept the offer, giving Brookfield and QIA control of 85 per cent of Songbird.
Consequently The Board has issued a statement saying: “In the event that the offer becomes or is declared unconditional as to acceptances, shareholders should accept the offer.”
Brookfield and QIA originally stated their interest in Songbird late last year with an initial £2.2 billion offer. Both parties already have holdings in Canary Wharf, with Brookfield owning 22 per cent of Canary Wharf Group and QIA owning 28.6 per cent of Songbird.
Today’s announcement adds to Qatar’s extensive London property portfolio, which boasts a number of trophy assets including Harrods and The Shard.
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