Billionaire brothers in Chelsfield key bid role
THE billionaire Reuben brothers have emerged as key players in Elliott Bernerd's GBP900m management bid for
property firm Chelsfield, which has finally secured board approval.
David and Simon Reuben, who made a fortune from property and the Russian metal markets, are investing more than
GBP250m in equity and debt finance in return for a 35pc stake in the Chelsfield buyout vehicle Duelguide.
Since liquidising their GBP1.5bn Russian assets, the Reubens have been looking for deals. They failed in their
attempts to buy Selfridges and Scottish & Newcastle's pubs.
Bernerd said: 'I have known them for 35 years. I am very happy to have secured this relationship with
them.' Analysts criticised Bernerd's bid of 315p cash - or 320p in cash and shares in the privatised firm - as
too low.
But with 44pc acceptances and no likely counterbidder, most expect it to go through.
Bernerd will keep GBP45m of the GBP115m proceeds from his 12.5pc Chelsfield stake and will reinvest the rest in
Duelguide.
Rival property firms want Chelsfield's Merry Hill shopping centre, near Dudley, but have been deterred by its
loss-making internet services arm Global Switch.
Chelsfield rose 9p to 315p.
¦ Canary Wharf founder Paul Reichmann has just five days left to secure backing to make a GBP1.6bn offer for the
development and derail Morgan Stanley's bid. CW was unchanged at 2663/4p.
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