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Songbird's major shareholders accept bid offer

Three major shareholders owning half the shares in Songbird Estates have indicated that they will accept the offer from Qatar Investment Authority and Brookfield.
January 28, 2015

Major shareholders in Songbird Estates (SBD) - the real estate company that owns 70 per cent of Canary Wharf - have decided to accept the terms of a joint formal offer from the Qatar Investment Authority (QIA) and Canadian property investor Brookfield Property Partners.

IC TIP: Accept at 343p

Previously, Qatar had support from 28 per cent of Songbird's free float, which included its own 21 per cent stake. But with the three major shareholders - namely, Simon Glick, who helps to run the Glick Enterprises property empire; the China Investment Corporation; and US investment bank Morgan Stanley - Qatar will have the support from just over 85 per cent of the issued share capital.

Crucially, if QIA and Brookfield receive acceptances for, or otherwise acquire, 90 per cent or more of Songbird's shares, they will exercise their right to acquire compulsorily the remaining shares. However, if this level is not reached, and having a controlling vote on the board of Songbird, they will consider delisting the shares from the Alternative Investment Market. This would leave minority shareholders with an interest in an unlisted company, and stripped of the protections available to them while the company remains on Aim. If the offer becomes unconditional, the board is recommending that shareholders accept the offer, and those directors holding shares have indicated that they will do the same.