UK regeneration specialist St Modwen said on Friday that it has received a 542-pence-per-share non-binding offer proposal from US asset management giant Blackstone.
The proposed bid values the group at around £1.2 bn (€1.4 bn), representing a premium of 21% to St. Modwen's closing share price of 448 pence on 6 May 2021; a 37% premium on the volume weighted average St. Modwen share price of 395 pence over the past six months as well as a 24% premium to the firm’s latest reported EPRA Net Tangible Assets Per Share of 438 pence.
Having considered the possible offer, St. Modwen also said that it would be willing to recommend the offer ‘unanimously’.
The companies said they are working closely together to complete Blackstone’s confirmatory due diligence as soon as practicable.
St. Modwen delivered strong operational results in 2020 with a strategy focused on two sectors, logistics and housebuilding, which make up 78% of its portfolio and are expected to represent over 90% within three years.
Logistics represent nearly half of the portfolio, with the firm on track to deliver 1.5million sq ft of new developments in 2021. The company boasts a total long-term pipeline of 19million sq ft, focused on key logistics corridors and conurbations.