MediaCityUK developer Peel looks set to acquire Pinewood Shepperton after its improved offer was accepted by the directors of the facilities group.

Peel Holdings already owns almost 30% of Pinewood and has increased its offer by around £8m - to £96m - in the face of rival takeover interest from former Harrods owner Mohamed al Fayed.

Peel said it expected Pinewood to operate independently of its own media assets, which include the new home for the BBC, ITV, Coronation Street and the University of Salford at the MediaCityUK development at Salford Quays.

The board of Pinewood, led by former ITV chairman Michael Grade, said Peel had been a supportive shareholder and the takeover proposal provided the business with the long-term stability it needed.

Under the terms of the acquisition, each Pinewood shareholder will be entitled to receive 200 pence in cash per Pinewood share.

The offer, including the proposed financial year end 31 December 2010 final dividend of 2.5 pence per share, values the entire issued and to be issued share capital of Pinewood at approximately £96.1 million

Subject to approvals, the acquisition is expected to complete at the end of June.

Pinewood Shepperton is planning a £20 million ‘Project Pinewood’ expansion at its studios in Buckinghamshire that will see it build new facilities, sets and up to 1500 homes.

 

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