St Modwen Properties has received a proposal from US private equity giant Blackstone regarding a £1.2bn offer for the company.
The board of St Modwen said it was minded to unanimously recommend the offer, which is at a huge premium to its share price and net asset value.
The possible cash offer of 542 pence is a premium of around:
- 21.1% to St Modwen’s closing share price of 448 pence on 6 May 2021;
- 33.7% to the volume weighted average St Modwen share price of 405 pence over the 90-day period ending on 6 May 2021;
- 37.2% to the volume weighted average St Modwen share price of 395 pence over the 180-day period ending on 6 May 2021; and
- 23.8% to St Modwen’s reported 2020 EPRA net tangible assets per share of 438 pence.
St Modwen’s share price rocketed almost 20% in early trading today (Friday) on the news.
The company has two big development arms focused on housebuilding and the industrial and logistics property sector. Both sectors are seeing favourable supply and demand characteristics, with Blackstone thought to have been attracted by St Modwen’s large logistics landbank and the potential returns on offer in developing that out.
The board St Modwen said in a statement: “Having considered the possible offer, the board of St Modwen has indicated to Blackstone that the possible offer is at a value the board would be willing to recommend unanimously, should a firm intention to make an offer be announced on such terms.
“The possible offer is subject to a number of pre-conditions, including the satisfactory completion of confirmatory due diligence which is currently underway by Blackstone. St Modwen and Blackstone are working closely together to complete Blackstone’s confirmatory due diligence as soon as practicable. Blackstone has confirmed that the possible offer is not subject to any financing pre-condition.”
SMP : St Modwen Properties subject of £1.2bn cash offer