Saudi Prince Al-Waleed Bin Talal, Chairman of Kingdom Holding Company, and the Morgan Stanley-led consortium are set to win the offer to buy Canary Wharf, developer of London's second financial district.
Canary Wharf said on Monday it would back the offer from Morgan Stanley's investment vehicle, Songbird, because it had a higher cash component. The consortium made an offer of 2.95 British pounds a share ($5.3), valuing the company at approximately ₤1.7 billion ($3.1 billion).
Prince Al-Waleed has already invested in Canary Wharf through companies held by trusts for his benefit and the benefit of his family. The Prince is contributing a combination of shares and cash valued at ₤70 million in exchange for approximately eight percent of the new structure.
“I believe the consortium’s bid is the best offer available to Canary Wharf shareholders. Therefore, the consortium’s offer has my full backing,” commented Prince Al-Waleed.
In 1995, Prince Al-Waleed invested £40 million to acquire about 6.6 percent of Canary Wharf. In January 2001, the Prince finalized the sale of two thirds of his Canary Wharf shares equivalent to 4.6 percent of company stock shares and held on to the 2.3 percent balance vowing not to sell.
Once the Morgan Stanley-led offer is accepted by shareholders in May, the Prince’s investment is hoped to witness another rally similar to the one Canary Wharf shares enjoyed a few years back. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
