Blackstone to buy FTSE listed property developer St Modwen for £1.2bn
US-based private equity firm Blackstone will buy property developer St. Modwen, in a deal that values the British firm at just more than £1.2bn.
Directors at St. Modwen said they consider Blackstone’s offer to be fair, and as a result intend to unanimously recommend that shareholders vote in favour of the deal.
Under the terms of the acquisition each St. Modwen shareholder will be entitled to receive 545 pence in per share in cash.
Danuta Gray, chair of St Modwen, 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.
“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.”
Head of Blackstone Real Estate Europe James Seppala added: “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.”