St Modwen accepts sweetened Blackstone take-private offer

UK property developer St Modwen said on Thursday that it had accepted an increased takeover offer from US alternatives giant Blackstone, valuing the FTSE 250-listed firm at £1.3 bn (€1.5 bn).

St Modwen has agreed to a price of 560 pence per share in a final offer made by Blackstone vehicle Brighton Bidco, which compares to 542 pence per share proposed last month.

The bid represents a premium of 25% to St Modwen's closing share price of 448 pence per share on the day before New York-based Blackstone’s interest was first revealed in early May.

St Modwen's directors said the latest offer was in the 'best interests' of shareholders.

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 represents nearly half of the portfolio, with the firm on track to deliver 1.5 million sq ft of new developments in 2021. The company has a total long-term pipeline of 19 million sq ft, focused on key logistics corridors and conurbations.

Foreign private equity interest in British companies has increased in recent months as market experts say they are perceived as being undervalued in an investment climate characterised by soaring stock markets and very low interest rates.


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