CSC turns down Simon delay request

Simon Property Group has failed to persuade Capital Shopping Centres (CSC) to postpone a deal to buy the Trafford Centre in Manchester for £1.6bn including debt from Peel Group.

The US company wanted the deal delayed to give it time to make an offer for CSC, in which it has a 5.6 percent stake. But CSC said a delay was not in shareholders’ best interests and it would go ahead with the acquisition. CSC raised £221.12m by placing 62.3m shares at 355p to fund the purchase.

The deal is still subject to shareholder approval but Peel will have a 19.9 perent stake in CSC if it goes though. This will rise to 24.9 percent if Peel exercises its convertible bonds. Furthermore, Peel’s chairman, John Whittaker, will become deputy chairman of CSC.

Approval of the Trafford Centre deal would give CSC ownership of 14 of the UK’s leading 25 shopping centres.

CSC was demerged from Liberty International in May.