(Alliance News) - Empiric Student Property PLC on Monday retracted statements made last week about its synergies and market presence amid a proposed takeover by Unite Group PLC.
Both companies own and operate student accommodation in the UK. Empiric is based in London and Unite in Bristol.
Empiric on Thursday said it had received a GBP719 million cash and share bid from Unite, for which it had begun due diligence. The offer is for 30 pence in cash and 0.09 of a new Unite share for each Empiric share, valuing each Empiric share at 107.0p, based on Unite's closing share price of 855.5p on Wednesday.
Following the offer's announcement on Thursday, "senior representatives" of Empiric met with investors and an analyst, leading to the release of statements on Empiric's synergies and relations with the CMA.
"That meeting was not attended by an appropriate financial adviser or corporate broker to the company," Empiric said on Monday. "The statements should not have been made."
Empiric has walked back the suggestion that it could reduce GBP15 million in overheads by as much as two-thirds, "plus some financial synergies that could come from being a larger size entity". The company said accounts cannot support the statement, which "was neither properly compiled nor prepared with due care and consideration," it said.
Empiric also retracted the suggestion that it may need to dispose of some assets, as "the CMA will probably look at six out of the 23 cities" where it operates. Empiric has not engaged with the CMA in this regard, the firm said, or undertaken any "substantive competition analysis".
Unite's approach is not yet a formal proposal - the company has until July 3 to confirm its intention to make a firm offer for Empiric.
Empiric shares were up 0.4% at 103.60 pence each on Monday morning in London, while shares in Unite rose 0.1% to 841.00 pence each.
By Holly Munks, Alliance News reporter
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