The 542p per share non-binding conditional proposal represents a 21.1% premium to its closing share price on the day prior to the announcement, and 33.7% to the volume weighted average price over a 90-day period.
St Modwen’s board has indicated that it is willing to recommend the deal unanimously.
The share price of the company prior to a spike fuelled by the news is still 20% away from the pre-Covid high of 530p. Covid lockdown rules led to a £120.8m loss in the company last year, despite a profitable second half.
Blackstone is carrying out its due diligence process and has confirmed that the offer is not subject to any financing pre-condition. The firm will have until 4 June to decide if it intends to make an offer.
Earlier this year Blackstone agreed to buy data-driven and tech-enabled interior design service provider Interior Logic Group from fellow private equity houses Littlejohn & Co and Platinum Equity in a $1.6bn deal.
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