Intu requests deadline extension for talks to take the company private

Shopping centre owner Intu has requested an extension from the Panel on Takeovers and Mergers, saying it needs more time to come to an agreement on taking the firm private.

The Manchester Trafford Centre-owner said the extension had been granted, and a consortium of buyers now have until 5pm on 22 November to make a formal offer, previously valued at £2.9bn. 

The consortium consists of billionaire entrepreneur John Whittaker's Peel Group, Saudi Arabia's Olayan Group and Canadian firm Brookfield Property Group. The deadline had previously been set for tomorrow.

Intu said that "good progress" had been made with the consortium so far, with the request for an extension being made so that discussions could continue.

Whittaker already owns a 27 per cent stake in the company, while Olayan Group holds a 2.6 per cent stake. The consortium first made an offer of 205p per share on 11 October, which was later revised to 215p per share.

Shares in Intu jumped nearly 30 per cent when Whittaker's plans were first reported, but however since mellowed. Intu's share price edged up as much as 0.6 per cent in trading this morning.

The news follows a reveal from Intu last month which said it took a £300m hit to its property valuation in the last quarter, reflecting the "current negative sentiment towards UK retail property".

It added failing high street businesses in 2018 are set to hit its like-for-like growth by 1.5 per cent, leaving full year growth either flat or at one per cent.