Colliers gets takeover bid from investor

PROPERTY services group Colliers International has received a takeover offer for its UK arm from its main shareholder, Canadian property giant FirstService.

Colliers, the world’s third largest commercial real estate organisation, said the price indicated was at a slight discount to Monday’s closing price of 1.47p, valuing the group at just over £2m. Its shares tanked 24 per cent to hit 1.1p yesterday.

Its UK business, which is listed on the Alternative Investment Market, has been losing money heavily over the past eighteen months, though the group has said it expected to break even in the second half of 2011.

The firm’s City office works as joint leasing agent for London Bridge Place, a smaller sister project to the Shard skyscraper.

The group lost £3.99m in the half-year to June 2011, on turnover of £31m, and has seen its share price tumble from highs over 8p in August.

FirstService, which already owns a 29.9 per cent stake in the UK business, has until 21 February to make a firm offer. The Canadian firm generates over US$2.2bn in annual sales and has over 20,000 staff worldwide.