Intu in talks with major shareholder Whittaker, new investors to raise cash (updated)

Link Real Estate Investment Trust

10/02/2020 08:25

(Adds shares, details on company's debt, background)
    Feb 10 (Reuters) - Shopping centre operator Intu  INTUP.L 
said on Monday it was 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.
    The debt-laden company said in January it was targeting an
equity raise by the end of February to tackle its debt load as
it engaged in discussions with shareholders and potential new
investors.  urn:newsml:reuters.com:*:nL4N29P1PJ  urn:newsml:reuters.com:*:nRSJ4570Ca
    Shares in the owner of Manchester's Trafford Centre rose
4.5% to 14 pence by 0822 GMT. 
    Intu has struggled to reduce its debt amid increasing store
closures on Britain's high street and as retailers focus on
online sales to cut costs. The company's net debt stood at 4.68
billion pounds ($6.03 billion) as of June 2019.
    The company did not say how much it was looking to raise,
however, the Sunday Times reported last month that it could be
as much as 1 billion pounds.  urn:newsml:reuters.com:*:nL4N29P20F
    Whittaker made a 2.9 billion pounds approach for the company
in 2018 but later dropped it. Rival Hammerson  HMSO.L  also
abandoned a 3.4 billion pounds takeover offer for Intu in 2018. 
    Citigroup last month slashed its target price for Intu's
shares to just one pence after a media report that the plunging
value of one of the company's flagship properties triggered a
covenant in its largest bond.  urn:newsml:reuters.com:*:nL4N29Z4C2
    

($1 = 0.7764 pounds)

 (Reporting by Samantha Machado in Bengaluru; Editing by Shounak
Dasgupta and Aditya Soni)
 ((Samantha.machado@thomsonreuters.com; Within UK +44 20 7542
1810; Outside UK +918061822699; Twitter: https://twitter.com/SamanthaM_TR;))