Blackstone to buy St Modwen in £1.2bn deal
St Modwen Properties said on Thursday that it has agreed to be bought by US private equity firm Blackstone in a deal that values the company at approximately £1.2bn.
Under the terms of the transaction, St Modwen shareholders will receive 542p a share. The price represents a premium of around 21.1% to the closing share price of St Modwen on 6 May, which was the last day before the start of the offer period.
Chair Danuta Gray said: "Over the last four years, St Modwen has successfully reshaped its business to focus on logistics and housebuilding. Whilst both sectors benefit from long term structural growth trends, St Modwen's financial position is strong and there is a solid strategy in place, the quantum and timing of generating shareholder value is naturally subject to execution risk.
"The board has therefore been able to evaluate today's recommendation from a position of strength. Mindful of the pace of capital growth in the UK logistics market in particular and the future growth potential in our logistics and housebuilding businesses, initial approaches were rejected.
"However, following careful consideration we believe this offer is in the best interests of St Modwen shareholders and significantly accelerates the value that could be realised by St Modwen if it were to remain independent."