(Alliance News) - GCP Student Living PLC on Friday agreed to a GBP969 million takeover from a consortium which includes student accommodation provider Scape Living PLC.
Scape and iQSA Holdco Ltd will pay 213 pence per share for the student accommodation investor, valuing it at GBP969 million.
GCP Student shares surged 11% to 214.00p each in London on Friday afternoon. The 213p sum is a 31% premium to GCP's closing price of 163p on July 1, the day before the offer period began.
GCP on July 2 confirmed it had received takeover interest from the consortium, which will be backed by funds managed by APG Asset Management NV as well as Blackstone Funds.
APG owns just over 11% of GCP Student. The company's board backed the offer.
GCP Student said: "In arriving at its recommendation, the GCP board has factored in the increasingly positive news flow in recent months, most notably the Covid-19 vaccine rollout as well as the extremely strong investment appetite and transaction activity in the purpose-built student accommodation sector.
"However, the GCP board has tempered these factors with a recognition that, because of the continued global impact on travel caused by the Covid-19 pandemic and the effect of Brexit on student movement from the EU, there remains considerable uncertainty on occupancy levels for at least one further academic year and possibly beyond."
The company noted that in the 2020/2021 academic year, 73% of its reservations were from overseas students.
"Consequently, whilst the GCP board remains confident in the standalone prospects for GCP, having negotiated several improved proposals from the consortium the GCP board believes that the acquisition allows shareholders to capture anticipated future value today, whilst eliminating the associated uncertainties," the company added.
By Eric Cunha; ericcunha@alliancenews.com
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