Decision details

The Cabinet will be asked to give in principle approval to the acquisition of London-east UK Limited’s land and business interests at the former Sanofi site, subject to all appropriate due diligence and viability / value for money assessments, and delegate authority to the Chief Operating Officer, acting on advice from the Investment Panel and in consultation with other officers and relevant Cabinet Members, to determine the preferred method of purchase and final terms.

The Cabinet resolved to:

(i)  Agree that the Council should seek to acquire London-east UK Limited’s land and business interests at the former Sanofi site, in accordance with the strategy set out in the report and subject to all appropriate due diligence, viability / value for money assessments;

(ii)  Delegate authority to the Chief Operating Officer, following consideration by the Investment Panel and in consultation with the Director of Law and Governance, the Cabinet Member for Finance, Performance and Core Services and the Cabinet Member for Regeneration and Social Housing, to determine the preferred method of purchase and final terms including, if appropriate, a working capital loan to Barking and Dagenham Trading Partnership subject to:

a)  a detailed business case;

b)  appropriate due diligence and assessments, including viability / value for money / financial / tax related implications;

c)  compliance with state aid law and principles in advancing a loan or other assistance on commercial market facing terms;

d)  legal due diligence and advice from external advisers on the corporate acquisition;

(iii)  Authorise the Chief Operating Officer, in consultation with the Director of Law and Governance, the Cabinet Member for Finance, Performance and Core Services and the Cabinet Member for Regeneration and Social Housing, to enter into all necessary agreements to give effect to the proposals, subject to a recommendation from Investment Panel to approve the financial soundness and viability of the purchase.