UK property developer St Modwen has agreed to be bought by Blackstone for £1.24bn (€1.4bn).
The FTSE 250 company said it has accepted the offer following the receipt of multiple proposals from Blackstone negotiated over a 10 week period commencing in February.
Blackstone is offering St Modwen shareholders 542p in cash for each share, a price which represents a 21.1% premium to St Modwen’s share price on 6 May, the day prior to Blackstone’s non-binding conditional proposal.
St Modwen said it intends to recommend that its shareholders vote in favour of the takeover.
Established in 1966, St Modwen operates across three specialist divisions: St Modwen Logistics, St Modwen Homes and Strategic Land & Regeneration. The company is active across England and South Wales with a portfolio totalling £1.37bn.
Danuta Gray, the chair of St Modwen, said: “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. Additionally, the board is reassured by Blackstone’s views and approach to investing in the business and supporting our people.”
James Seppala, Head of Blackstone Real Estate Europe, said: “Our strong conviction in the UK, together with St Modwen’s high-quality asset base, its team, and its operational capabilities, give us confidence we can further build on the company’s successes. We look forward to working with the talented team at St. Modwen in the years ahead.”
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