November 29, 2018 / 9:04 AM / a year ago

BUZZ-Intu: Hits record low as consortium drops buyout plans

(Updates with share move, milestones, analysts comments)

** British shopping centre group’s shares plunged over 40 pct to hit a life low, after its Dep. Chairman John Whittaker-led consortium dropped takeover plans

** “We suspected the process wasn’t running smoothly and we always thought it would be a tough sell to Brookfield shareholders” - Jefferies analysts

** Liberum adds that rejected 425p cash bid from Simon Group in 2010, failed all-share merger with Hammerson at 254p in 2017, and now a failed 210.4p cash bid from the Brookfield consortium — “represent a disappointing outturn for long-term shareholders in Intu”

** Peel Hunt notes that Intu is left in “tricky” situation and sees loan-to-ratio (LTV) moving towards 60%, which would require selling around 40% of the portfolio or raising 2 bln pounds in fresh equity to reduce LTV back to 35%

** Intu on track to lose roughly 1 bln pounds off of its ~2.62 bln pounds market cap

** Rival Hammerson down 5.6 pct

Reporting by Muvija M in Bengaluru

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