Songbird Estates board acknowledges that 93% of shareholders now want takeover

Canary Wharf

A Qatari-led bid to takeover Canary Wharf has won out, after the board of the organisation that owns the London business district, Songbird Estates, finally relented and approved the takeover.

In a statement on Friday the Songbird Estates board acknowledged that joint bidders the Qatar Investment Authority (QIA) and Brookfield Property Partners had succeeded in securing support from 65% of shareholders.

Combined with QIA and Brookfield鈥檚 existing shareholdings in Songbird, this took support for the offer to 93.4%.

The bidders had said the bid was likely to be declared 鈥渨holly unconditional鈥 by the regulatory deadline of 12 February and so on Friday afternoon Songbird鈥檚 board said it 鈥渘ow recommends that shareholders accept the offer鈥.

The offer of 350p-per-share values Songbird Estates at 拢2.6bn.

Songbird鈥檚 board initially rejected the bidders鈥 approach in November and, when a formal offer was tabled the following month, advised shareholders to 鈥渢ake no action鈥, saying the offer 鈥渟ignificantly鈥 undervalued the company.

But the bidders continued to amass shareholder support, including from the company鈥檚 three major shareholders - Glick, China Investment Corporation and a fund managed by Morgan Sindall - earlier last week, prompting Songbird鈥檚 board to relent and accept.