RE: Live ask1 Feb 2021 15:55
A US private equity investment firm's takeover bid for pubs and brewing giant Marston's has been rejected by its board on the basis that it "significantly undervalues" the listed company. Two prior bids, submitted in December, have also been revealed.
The move from Platinum Equity Advisors was first outlined on Friday 29 January.
A Marston's statement to the London Stock Exchange said: "The board of Marston's has considered the proposal of 105 pence per Marston's share with its advisers, and unanimously rejected the proposal on the basis that it very significantly undervalues Marston's.
"The proposal followed two earlier proposals at 88 pence and 95 pence per share in December 2020, both of which were received prior to the Brains transaction, and were unanimously rejected by the board.
"The proposal represents a 19 per cent discount to the company's share price at the start of 2020, pre-Covid-19; and since that time the company has completed the transformative joint venture with Carlsberg to create the Carlsberg Marston's Brewing Company, which realised significant value on completion and is anticipated to continue to do so as the benefits of the joint venture are realised.
"In December 2020 the company also announced an agreement to operate 156 high quality pubs within the SA Brain estate in South and West Wales, in a transaction which is expected to be accretive to earnings in the first full year of trading."
Platinum is now required to either announce a firm intention to make an offer for the company or not by 5pm on Friday 26 February.
JP Morgan Cazenove is acting as financial adviser exclusively for Marston's.