SYDNEY, (AFP) - Australian shopping center giant Westfield is teaming up with property group Multiplex and Aldersgate Investments to make a cash offer for Duelguide, the company which owns British developer Chelsfield.
Westfield said the agreement with Multiplex and Aldersgate, the property investment vehicle of billionaire brothers David and Simon Reuben, valued Duelguide at 585 million pounds (1.1 billion US dollars).
Under the agreement, details of which are to be released later this week, Multiplex would create a 50:50 joint venture company with Aldersgate, to participate in the joint offer for Duelguide.
If the joint offer is successfully concluded, the assets of Duelguide would be allocated between the Multiplex/Aldersgate venture and Westfield.
Westfield said its investment under the deal would total approximately 1.2 billion pounds and provide the company with an additional 1.8 billion pounds of future development opportunities.
Westfield, controlled by the Lowy family, last month made a solo 585 million pound cash bid to acquire Duelguide, prompting speculation Multiplex could make a counter offer.
Multiplex owns approximately six percent of Duelguide while the Reuben brothers have about 34 percent.
Westfield said that if the joint bid proposal did not go ahead, it would pursue its current cash bid proposal.
Under the joint bid proposal, Westfield said its would acquire full ownership of Chelsfield's Merry Hill shopping center development, near Birmingham, and a 25 percent interest in London's White City shopping center.
When completed, White City is expected to be the largest retail outlet in central London.
Westfield will also assume full control of the Broadways shopping center site in Bradford and in the Sprucefield shopping center in Lisburn, Northern Ireland, it said.
The investment would expand Westfield's British portfolio from seven centers to nine along with four retail development sites, bringing its investment in the country to around 2.15 billion pounds, up from 950 million pounds.
Westfield said the parties have received an irrevocable undertaking from Uberior Ventures Ltd, which holds 13 percent of Duelguide, that it will accept the joint offer.
Tintagel International Limited, a company associated with Elliott Bernerd, has confirmed it plans to accept the offer in respect of its entire 11.3 percent shareholding, it said.