St Modwen accepts £ 1.2bn takeover offer from Blackstone | New


British property developer St Modwen has agreed to be acquired by Blackstone for 1.24 billion pounds (1.4 billion euros).

FTSE 250 said it accepted the offer following receipt of several proposals from Blackstone negotiated over a 10-week period starting in February.

Blackstone is offering St Modwen shareholders 542p in cash for each share, a price that represents a 21.1% premium over the St Modwen share price on May 6, the day before Blackstone’s non-binding conditional proposal .

St Modwen has announced its intention to recommend that its shareholders vote in favor of the takeover.

Founded in 1966, St Modwen operates in three specialist divisions: St Modwen Logistics, St Modwen Homes and Strategic Land & Regeneration. The company is active throughout England and South Wales with a portfolio totaling £ 1.37 billion.

Danuta Gray, President of St Modwen, said: “Given the pace of capital growth in the UK logistics market in particular and the potential for future growth in our logistics and housing construction businesses, initial approaches have been rejected.

“However, after careful consideration, we believe this offer is in the best interest of St Modwen shareholders and significantly accelerates the value that could be realized by St Modwen if it were to remain independent. Additionally, the Board of Directors is reassured by Blackstone’s perspective and approach to investing in the business and supporting our employees.

James Seppala, Head of Blackstone Real Estate Europe, said: “Our strong conviction in the UK, along with St Modwen’s high quality asset base, team and operational capabilities give us the confidence that we can continue to build on the company’s successes. We look forward to working with the talented team at St. Modwen in the years to come.

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