Tuesday 29 May 2018 12:38 pm

In-demand shared office firm IWG rejects offer from US investor Prime Opportunities

Shared office space firm IWG has rejected an offer from Los Angeles-based property investor Prime Opportunities, just two weeks after it confirmed it had received offers from a trio of other firms.

Prime Opportunities said that it had led a consortium which made a cash offer for the entire business, but that IWG had dismissed the approach.

This was more than IWG had said regarding its approaches from private equity firms Lone Star, Starwood and TDR Capital. On 11 May, IWG said its was "evaluating the possible offers with its financial advisers and shareholders".

Read more: IWG share price jumps 20 per cent after talks of takeover

"Prime Opportunities continues to actively consider the possibility of making an offer for IWG and is confident in its ability to submit a further proposal to IWG's board for its consideration in due course," the US firm said today in a statement.

IWG's shares, which had risen more than 35 per cent on news of the initial approaches earlier this month, climbed another two per cent this morning.

Lone Star, TDR and Starwood have until 8 June to decide whether they will make a firm offer for IWG. Prime Opportunities, meanwhile, has until the 26 June.

FTSE 250-listed IWG is valued at more than £2bn and posted profits of £149.4m last year.

A profit warning last year led to a takeover attempt from Canadian property group Brookfield, the owner of Center Parcs, though the £2.4bn bid was eventually rejected.

The company has faced increased competition from flexible office space companies like WeWork and UK startup The Office Group.

Read more: IWG open to talks with private equity firms over potential takeover