Blackstone gets green light for £1.2bn St Modwen takeover

Blackstone’s £1.2bn bid for developer St Modwen has been approved by the developer’s board.

Blackstone, which owns the NEC Group and a Center Parcs, will pay 542 pence per share to take control of St Modwen.

The deal was first revealed earlier this month.

Danuta Gray, chair of St Modwen, said: “Over the last four years, St Modwen has successfully reshaped its business to focus on logistics and housebuilding. Whilst 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 quantum and timing of generating shareholder value is naturally subject to execution risk.

“The board has therefore been able to evaluate today’s recommendation from a position of strength. Mindful of the pace of capital growth in the UK logistics market in particular and the future growth potential in our logistics and housebuilding businesses, initial approaches were rejected. However, following careful consideration we believe this offer is in the best interests of St Modwen shareholders and significantly accelerates the value that could be realised by St Modwen if it were to remain independent. Additionally, the board is reassured by Blackstone’s views and approach to investing in the business and supporting our people.”

James Seppala head of Blackstone Real Estate Europe, said: “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.”