Pinewood Shepperton, the studios where films including the latest Harry Potter movie and the James Bond franchise were shot, has given its backing to an improved takeover offer from Peel Holdings following rival interest from former Harrods owner Mohamed Al Fayed.
Peel, the commercial property group which leased part of Salford's MediaCityUK site to the BBC, upped its original bid by around £8m, valuing the business at £96.1m. It already owns 29.8% of Pinewood.
The board of Pinewood, led by former ITV executive chairman Michael Grade, said Peel had been a supportive shareholder and the takeover proposal provided the business with the "long-term stability it needs to build on the success of the past few years".
"In the context of increasing illiquidity in the trading of Pinewood shares, the Pinewood independent directors believe that this stable time in a volatile industry offers shareholders an opportune moment to realise value," Grade said.
"Peel has been a most supportive shareholder, committed to our strategy and vision for the group. The board is satisfied that the long-term future of these assets, which make such a contribution to the growth of the UK's creative industries, will pass into safe hands."
Peel will pay 200p in cash per Pinewood share, up from an offer of 190p per share on 7 April. Al Fayed confirmed last week that he was considering making a bid for Pinewood.
Pinewood shares, which have gained more than quarter in value since Peel's initial offer, were down 1.4% at 210p at 8.25am on Wednesday.
The 75-year-old business is planning an ambitious £20m Project Pinewood expansion at its studios in Buckinghamshire that will see it build new facilities and sets on a par with Hollywood.
Its television studios have shot Dancing on Ice, Dragons' Den, My Family, Piers Morgan's Life Stories and Ant & Dec's Push The Button.
Peel said it expected Pinewood to operate independently of its own media assets, which include the new home for the BBC, ITV, Coronation Street and the University of Salford at the MediaCityUK development at Salford Quays.
The group invests in infrastructure, transport and real estate in the UK and has nearly £6bn of assets. It recently sold the Trafford Centre to Capital Shopping Centres for £1.6bn and is chaired by billionaire investor John Whittaker.
"Peel is a long-term investor in Pinewood and the wider media sector through its MediaCityUK investment and looks forward to supporting the Pinewood management in growing its operational business and developing its unique Project Pinewood proposal," Whittaker said.
"Peel represents a long-term strategic partner for Pinewood in continuing to grow and develop the business."
Grade added: "For 75 years the names Pinewood and Shepperton have been iconic in the global screen industries.
"The current management has advanced the business, investing to re-establish it as a world-class centre for all creative industries and expanding internationally with Pinewood representation now in five key regions around the world.
"We have developed a digital infrastructure to support our UK studios and Pinewood is planning for the next 75 years with innovative schemes such as Project Pinewood."
