City Briefs: Islamic Bank of Britain; M&B; Redrow

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Talks ongoing over sale of Islamic Bank of Britain

TALKS to salvage the takeover of the Birmingham-based Islamic Bank of Britain are continuing although no offer for the business has been forthcoming.

The IBB said last month that fellow Islamic bank Masraf Al Rayan had come forward as a possible bidder following to collapse of takeover talks between the IBB and majority shareholder Qatar International Islamic Bank.

QIIB owns 88.41% of the issued share capital of the Birmingham operation, which would be sold to MAR should a bid be accepted.

In a market update, the IBB said: “Whilst the board of IBB has not received a direct approach from MAR, QIIB remain in discussions with MAR regarding the sale of their IBB shares.

“Any such purchase of IBB shares which carry 30% or more of the voting rights of IBB would trigger the requirement for a general offer.  MAR has further confirmed that if any offer is made it is likely that it would be solely in cash.”

MAR has now been granted an extension to a deadline on when an offer is made to December 10.


M & B chairman reverts to normal duties

BIRMINGHAM pubco Mitchells & Butlers has said Bob Ivell has resumed his role as non-executive chairman and handed over his executive responsibilities to Alistair Darby.  

The move follows the completion of an induction period for Mr Darby, who was appointed chief executive of the group last month.

M&B is one of the UK’s leading pub and restaurant operators. Its brands includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pubs, Browns, Metro Professionals, All Bar One, Nicholson’s, O’Neills and Ember Inns.

Morgan confirms no further talks on Redrow takeover

WOLVERHAMPTON Wanderers owner Steve Morgan has confirmed no further discussions have taken place regarding his bid to take control of housebuilder Redrow.

Mr Morgan, who founded Redrow and who has a 40% stake in the business, was part of a consortium involving Bridgemere Securities, Toscafund Asset Management and Penta Capital to buy-back control of the developer.

However, he said last month that no agreement could be reached and the matter was not proceeding.

In a trading update Mr Morgan, who remains Redrow chairman, said: “On October 18 Bridgemere Securities, Toscafund Asset Management and Penta Capital issued a statement that they were not intending to make an offer for Redrow. This followed discussions with the board about the preliminary expression of interest in relation to a possible offer.  There are no discussions ongoing.

“I, along with the rest of the management team and the board, am clearly focused on driving Redrow forward under our existing successful strategy to create value for all investors.”

He added that in the first 19 weeks of the housebuilder’s current financial year sales per site were up when compared with the same period last year.

“Redrow has continued to make steady progress in what are challenging but stable market conditions.  Sales per outlet are marginally up at 0.58 per week, compared to 0.55 in 2011,” said Mr Morgan.

“We have, however, operated from an average of 83 outlets during the year, compared to 72 last year, which has resulted in reservations for the year to date increasing by 17% in the regional businesses and 22% for the group as a whole, including London.”