Share price of Wembley developer Quintain surges 22 per cent as it confirms £700m Lone Star offer
Shares in Quintain Estates and Development, the property developer behind London’s Wembley Arena, jumped 22.4 per cent to 131p in early trading after its board recommended a takeover offer from US-based investment firm Lone Star.
In an announcement to the stock exchange this morning, the company said Quintain shareholders will receive 131p in cash for each share, valuing it at £700m.
The private equity group said it was attracted to the potential for the company’s land around Wembley Stadium.
“The proposed acquisition represents a unique opportunity for Lone Star to gain further exposure to residential and commercial assets in London,” it said.
“Wembley Park is one of the largest and most exciting urban renewal projects in Europe and complements our experience in this segment of the market. We intend to contribute significant additional financial resources to help Quintain in its next phase of growth: to accelerate delivery at Wembley Park, building more homes more quickly and continuing the creation of a cohesive and exciting new community.”
Quintain was established in 1992, and floated on the London Stock Exchange four years later.
In 2002, it paid £48m for the then-derelict Wembley arena, as well as the conference and exhibition centre, with the aim of redeveloping 7.8m square feet at Wembley Park.
It has completed the commercial phase including the London Designer Outlet and has now started work on the first phase of homes at the site.
In April, Quintain signed up to a second joint venture with Swiss private equity house Keystone to construct two buildings comprising 362 homes.
Quintain’s eventual aim is to have up to 5,000 homes at its Wembley Park scheme.
Last week Quintain reported half year pre-tax profits of £8m, from a loss of £25.2m in 2014.
The group also recently completed a £230m deal to dispose of its interest in the Greenwich Peninsula, which delivered a £31m profit. Revenue was £13.1m in the six months to 30 September, from £19.9m a year ago.
Chief executive Maxwell James said at the time of the results that Quintain is “poised to embark on an exciting period of growth”.