(Alliance News) - Shares rose in St Modwen Properties PLC on Friday after receiving a potential takeover offer worth GBP1.2 billion from US alternative asset investment firm Blackstone Group Inc.
Blackstone has offered to acquire St Modwen for 542 pence per share in cash per share, reflecting a 21% premium to the company's closing price of 448p on Thursday, and a 24% premium to its net tangible assets per share of 437.7p as at November 30 last year.
Shares in the Birmingham-based property developer were 19% higher at 531.50 pence on Friday in London, the best performer on the FTSE 250 index.
St Modwen said it has considered the offer, and that it would be willing to recommend the offer unanimously to its shareholders should Blackstone make a firm offer. However the offer is subject to several pre-conditions, including the completion of due diligence which is currently underway.
Blackstone is required to make a firm offer by no later than the end of business on June 4.
St Modwen specialises in the regeneration and remediation of brownfield land, previously developed land which is not in use and is possibly contaminated as a result of prior use. The group also operates in housebuilding and logistics real estate.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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