Shaftesbury’s board has rebuffed Samuel Tak Lee’s offer to purchase a stake for 888p per share, citing the higher trading price of the company.
The company was trading at 929.5p at the end of trading on 20 July, making the offer nearly 5% below the share value of the company.
In a Stock Exchange announcement, the board said: “The tender offer has not been solicited by the board of Shaftesbury, was announced without prior notice to Shaftesbury, and the board does not recommend it.”
The board is keen to attract longer-term investors than it perceives Lee to be, as well as parties more aligned with the firm’s business model.
Lee has held up to 5% of the company in the past before selling down his stake before Christmas 2014. His current offer would have taken his holding in the West End investment company to more than 13%.
Lee and his family’s companies do not hold enough in capital to make a direct bid for the entire firm, which has a market cap of £2.5bn.
It has been suggested that Lee may be anticipating a merger between Shaftesbury and a company with a common portfolio, such as Capital & Counties or Soho Estates, which would lead to a likely increase in share price.
Invesco is the current largest shareholder in the company with 13.9% of the share holdings.
