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Liberty mulls demerger of firms

Feb 05 2010 11:51

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Johannesburg - JSE- and FTSE-listed Liberty International is considering a split into two separate businesses: one focusing on shopping centres, and the other on London.

The UK's largest shopping centre owner - originally set up by South African businessman Donald Gordon in 1980 - confirmed in a statement on Friday that it was considering a potential separation of Liberty International.

"Such a transaction requires a number of third-party approvals which have been requested, and some of which are currently outstanding.

"The board will only be in a position to decide whether to proceed or not once it has progressed these matters further."

The Financial Times reported earlier on Friday that Liberty's £4.4bn worth of shopping centres would be split off into a new real estate investment trust with an expected market capitalisation of over £2bn.

The other business would own Liberty's £1.7bn of London properties.

These included Covent Garden in the West End, and Earls Court and Olympia in west London.

The new company would include conference facilities that generated earnings of about £30m a year.

The new company was expected to be given an initial value of about £1bn.

Liberty is currently valued at £2.8bn.

- Sapa

 
 
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