FirstService looks set to table a bid for Colliers International UK as it secures a further takeover extension.
A Stock Exchange announcement released just ahead of today’s 5pm “put up or shut up” deadline said that the Canadian property giant “is continuing constructive discussions with the company’s key stakeholders with the firm intention of completing a transaction shortly”.
A statement from Colliers added: “The precise nature of such a transaction is yet to be determined and it may provide negligible, or no value for shareholders.”
“It will, however, secure the future of the group’s operations, provide stability for employees and ensure uninterrupted service to all clients.”
FirstService, which is the majority shareholder in Colliers with a 29.9% stake, announced in January it was considering a takeover of the agent.
Last month, it was granted a one-month extension until 5pm on 20 March to undertake further due diligence after an initial Takeover Panel deadline of 21 February was reached.
Today’s extension gives the firm until 5pm on 3 April 2012 to make a firm offer, or walk away.
Colliers share price has risen from less than 1p last week to 1.2p today.
Last week, Estates Gazette revealed that the family owner of Colliers Austria has been quietly amassing a stake in Colliers International UK. Colliers Austria managing director Georg Muzicant, whose grandfather founded the firm now operating under the Colliers franchise from its Vienna headquarters, has around 17m shares in the UK firm – or a stake of more than 11%.
The family has held a small stake in the UK business for some time but has upped its holding from around 8% in January.
bridget.o’connell@estatesgazette.com
