Blackstone ups mega-bid bid for St Modwen

St. Modwen Park Burton
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Blackstone has upgraded its bid for developer St Modwen by around £40m.

St Modwen announced this morning (June 24) that Brighton Bidco – a company indirectly owned by investment funds advised by Blackstone – has upped its offer from 542p per share to 560p – adding another £40m to the value of the deal and bringing the takeover to £1.27bn.

Danuta Gray, chair of St Modwen said: “Given the repositioning of the business in the attractive logistics and housebuilding sectors, the momentum of the business and confidence in the management team, the board considered Blackstone’s approach from a position of strength.

“The board adopted a robust position on value, mindful of expected growth both in H1 2021 and over the medium to long term. 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 de-risking, the value that could be realised by St Modwen independently.”

James Seppala, head of Blackstone Real Estate Europe, added: “We believe this is a business with great potential and we will be providing significant additional capital to accelerate its existing plans and to fully realise the opportunity for the business, its customers and its employees. Our belief in our ability to grow St Modwen in this way enables us to make this final offer to shareholders at a significant premium to undisturbed market value.”

Romney Fox, investment director at Aberdeen Standard Investments, said: “We are supportive of the improved offer for St Modwen at 560p/share and intend to vote in favour.”

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