Shares of troubled shopping centre operator Intu Properties plc — which runs Manchester’s Trafford Centre and Arndale Centre, Newcastle’s Eldon Square and Gateshead’s Metrocentre — rose about 30% on Monday after it confirmed it is in “constructive discussions with shareholders … in relation to a proposed equity raise …”
Intu shares have fallen more than 80% over the past 12 months.
Intu said it is in talks with its largest shareholder, John Whittaker’s Peel Group, and new investors including Hong Kong-based Link Real Estate Investment Trust, to raise funds to shore up its balance sheet.
“Further to recent press speculation, intu properties plc confirms that it is engaged in constructive discussions with shareholders, including the Peel Group and others, and new investors including Link Real Estate Investment Trust and others, in relation to a proposed equity raise alongside intu’s full year results at the end of February,” said the company in a stock exchange statement.
“The company will make further announcements in due course, as appropriate.
“There can be no certainty that the equity raise will be implemented nor as to the terms on which any such implementation might occur.”