Marston's receives US private equity approach

(Sharecast News) - Marston's shares surged after the pub operator and brewer said it received a takeover approach from a US private equity firm.


The company said Platinum Equity Advisors approached it on Friday about a possible cash offer. Marston shares rose 18.5% to 88.6p at 11:37 GMT.

Marston's issued its statement in response to a Bloomberg report that Platinum had contacted the company about a bid. Platinum is based in Los Angeles with offices on the US east coast and in London and Singapore.

Private equity firms are on the lookout for deals armed with plenty of cash and with many shares still depressed by the Covid-19 crisis. Before the news broke, Marston's shares had tripled since mid-March but are still well below their 2020 peak of about 107p.

Marston's said: "The board will evaluate the proposal with its advisers and a further announcement will be made in due course. There can be no certainty that any firm offer will be made for the company, nor as to the terms on which any firm offer might be made."

The news helped send other UK pub stocks up including Mitchells & Butlers, up 2.9%, and City Pub, which gained 2.7%.