LONDON-Chelsfield Chairman Elliot Bernerd, tabled a bid late on Friday that values the company at £860 million ($1.4 billion) or 305p a share.

But the proposed management offer has met with some scepticism from the independent directors of Chelsfield. A statement from them said: “This proposal may not fully reflect the long-term value of Chelsfield but recognise that it is at a level above the diluted triple net asset value (adjusted for the revaluation of land) of 299p per share at 30 June 2003.” It added: “The independent directors intend to pursue discussions with the consortium, other Chelsfield shareholders unconnected with the consortium and certain other potentially interested parties.”

This scepticism is reiterated by some analysts who believe Chelsfield is worth as much as 443p per share. Some institutional shareholders, already irritated at how long it has taken Bernerd to file a formal bid, are also thought to want a minimum bid of around 360p. They are also concerned that the company has not done enough to court other bidders.

But set against this is a cash offer and Bernerd told the company his consortium will be in a position to make a fully funded bid by mid-November. Bernerd owns a 12% stake and has backing from Israeli Beny Steinmetz with 7.8%, and Lubna Olayan with 9%. Nina Wang is understood not to be part of the bid but will sell her stake to the bid vehicle.Shareholders are said to be concerned that not enough is being done to court other bidders and fear that Bernerd’s bid will be only 300p to 310p.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.