Blackstone makes £1.2bn take-private offer for UK real estate developer St Modwen

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Global private equity giant Blackstone Group has made a £1.21bn offer for St Modwen, a UK developer specialising in regeneration and remediation of brownfield land and urban environments.

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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