New offer from Peel gets Pinewood backing

PEEL Holdings has upped its offer for Pinewood Shepperton and won the backing of the film studio’s directors and a major investor.

In a statement to the stock market Peel said it would now pay 200p a share, up 10p on an earlier offer, valuing the business at £96.1m.

Peel already holds 29.7% of the shares and says it has now won the support of directors and a major shareholder, Crystal Amber, who together hold 33.4% of the share capital. Its offer will be put to shareholders at a general meeting on May 31.

Former Harrods owner Mohamed Al Fayed has also stated his intention to make a cash offer for the business but Pinewood’s directors said they had supported Peel’s move because there was no certainty of an offer from Al Fayed.

Pinewood’s chairman Lord Grade said the deal would give investors a chance to realise value at an “attractive premium” in what is a volatile industry.

In its first public statement on the deal Peel said it was part of a long-term strategy to broaden its investments in diverse sectors through partnerships with complementary businesses.  “Peel’s intention is for Pinewood to operate independently of Peel’s existing media assets, including MediaCityUK”, it said.

Chairman John Whittaker said: “Peel believes that the acquisition represents an attractive proposition for the shareholders of Pinewood. Peel is a long-term investor in Pinewood and the wider media sector through its MediaCityUK investment and looks forward to supporting the Pinewood management in growing its operational business and developing its unique Project Pinewood proposal.”

For several years it has been planning its £200m Project Pinewood scheme which will see the development of 113 acres into workspace and 1,400 homes in the style of famous locations around the world which Pinewood plans to use as sets. A planning inquiry into the project is underway.

Pinewood, famous for the production of James Bond and Harry Potter films, has studios in Pinewood in Buckinghamshire, and Shepperton and Teddington in Middlesex. The 75-year-old production site has more than 34 stages, five dedicated digital television studios and five digital presentation studios. In the year to December 31 Pinewood saw pre-tax profits rise 31% to £5.8m on sales of £43.4m, up 8%.

Peel, which agreed a £1.6bn deal to sell the Trafford Centre to Capital Shopping Centres in January, is responsible for developing MediaCity at Salford Quays which will be home to BBC North and new facilities for ITV.

The business has assets worth £6bn which include the Manchester Ship Canal, Mersey Docks, a share in Liverpool John Lennon Airport, and the 1,000-acre Hulton Park estate near Bolton.