(Alliance News) - Blackstone on Thursday made an increased final offer for St Modwen Properties PLC of GBP1.27 billion, after its first bid received a lukewarm reception from some analysts and investors.
The private equity firm raised its bid to 560 pence per share from 542p per share. Blackstone said it will not increase the offer any further unless a third party makes a competing takeover bid.
Shares in St Modwen were up 0.4% to 553.00p in London on Thursday morning.
The new offer is a 25% premium to St Modwen's closing price on May 6 of 448p, before Blackstone announced the 542p-per-share approach.
That was criticised as undervaluing the FTSE 250 firm, which owns and develops residential, logistics and land properties across England and Wales. The Birmingham-based company's portfolio is worth GBP1.37 billion, according to its website.
JO Hambro Capital Management, which owns 9% of St Modwen, said the initial offer was too low according to a Bloomberg report, while Peel Hunt analysts described it as "fair" but "by no means a knockout".
The deal has so far received the backing of holders of 11% of St Modwen shares, up from 6.6% on May 20. The scheme of arrangement for the takeover is scheduled to become effective on August 6.
"We are pleased to announce this increased offer, supporting our belief that the acquisition is in the best interests of St Modwen shareholders by significantly accelerating, and derisking, the value that could be realised by St Modwen independently," St Modwen Chair Danuta Gray said.
James Seppala, head of Blackstone Real Estate Europe, said: "This is a business with great potential and we will be providing significant additional capital to accelerate its existing plans."
By Ivan Edwards; ivanedwards@alliancenews.com
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