Regeneration and construction group St Modwen has struck a buyout deal with US private equity and investment firm Blackstone worth £1.2 billion.
News of the bid by Blackstone, which also owns the NEC Group, was announced earlier this month and today St Modwen confirmed a deal had been struck.
The offer is for the entire issued share capital of the Birmingham-based company at a cost of 542p per share and its board is recommending to all shareholders to accept it.
The listed group told the stock exchange it had received “multiple proposals” from Blackstone in the intervening period since its preliminary results were announced in February.
St Modwen is headquartered in Longbridge and is leading the long-running regeneration of the south Birmingham town at the former home of MG Rover which went bust in 2005.
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It has already developed new office and retail space, a Sainsbury’s supermarket, hotels and housing estates.
Chairman Danuta Gray said: “Over the last four years, St Modwen has successfully reshaped its business to focus on logistics and housebuilding.
“While both sectors benefit from long-term structural growth trends, St Modwen’s financial position is strong and there is a solid strategy in place.
“The board has therefore been able to evaluate today’s recommendation from a position of strength.
“Following careful consideration, we believe this offer is in the best interests of shareholders and significantly accelerates the value that could be realised if it were to remain independent.”
James Seppala, head of Blackstone Real Estate Europe, added: “Our strong conviction in the UK, together with St Modwen’s high-quality asset base, its team and its operational capabilities, give us confidence we can further build on the company’s successes.
“We look forward to working with the talented team at St Modwen in the years ahead.”
Blackstone is headquartered in New York and specialises in private equity, real estate, hedge funds and insurance.
Its other portfolio businesses include global genealogy website Ancestry, dating and social networking group Bumble and Bourne Leisure, owner of the Butlin’s and Haven holiday brands, which it acquired earlier this year.
In autumn 2018, it bought the NEC Group from LDC, the private equity arm of Lloyds Bank, for a rumoured £800 million.