Board recommends 120.5p per share offer by Jupiter Properties

Developer Minerva has accepted a takeover bid by a consortium of funds that values the property company at £202.6m.

The consortium is made up of funds advised by AREA Property Partners and a unit of DV, which is advised by Delancey Real Estate Asset Management.

The offer, made through a special purpose vehicle, Jupiter Properties, was for 120.5 per share, more than 50% higher than Minerva’s share price prior to the announcement that it was in talks that could lead to a bid.

Minerva, which has been seen a takeover target since the credit crunch started, has been struggling under a pile of debt, measured at more than £850m last year.

Much of its debt is attributable to two City office developments, The Walbrook and St Botolphs, which have been hit by the recession and a lack of tenants.

Minerva said the offer was conditional on Jupiter receiving acceptances from more than 50% of shareholders. The consortium already holds about 12% of its shares.

Minerva chairman Oliver Whitehead said the offer was a good deal for the company’s shareholders.

“The board has therefore decided to recommend the offer to Minerva shareholders, taking into account the risks, rewards and timescales associated with realisation of value from Minerva’s assets.”