Shareholder vote on Trafford Centre deal

The battle between Simon Property Group and Capital Shopping Centres (CSC) has reached its conclusion, at least for now, after a majority of CSC shareholders voted in favour of acquisition of Manchester’s Trafford Centre.

About 80 percent voted in favour of the £1.6bn purchase, including debt, from John Whittaker’s Peel Group at CSC’s Extraordinary General Meeting. A vote had been delayed pending an announcement on 5.1 percent shareholder, Simon’s intention.

Peel’s chairman, John Whittaker, joins the CSC board as deputy chairman as part of the deal and get a maximum 23.2 percent stake in CSC. Patrick Burgess, CSC chairman, said the deal was “value enhancing” and would strengthen the company’s position “as the leading operator of pre-eminent UK regional shopping centres”.

Simon made a £2.9bn approach on December 15, which CSC dismissed as inadequate. The offer was contingent on CSC ditching the Trafford deal. Simon walked away on January 11 after the Office of Fair Trading imposed a put-up or shut-up deadline.