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St Modwen Accepts New Offer from US Private Equity Firm

St Modwen, a property developer, accepted an offer by US investor Blackstone, worth £1,3 billion. The recent example of an investment swoop for a mid-sized British corporation was a private equity company.

In a final bid for Blackstone vehicles, St Modwen has agreed to the price of 560p per share.

The bid was 25% more than the share price of 448p/action the day before the first interest of New York-headquartered Blackstone was announced at the beginning of May.

On Thursday morning, shares climbed by 0.5% to 554percent.

Because of uncertainty about whether a Brexit trade agreement with the EU would be acceptable to British companies, private equity investors from outside the UK had already met on large piles of cash in advance of the pandemic and, since then, pounced on British companies that have undervalued themselves.

The supermarket chain Morrisons, aircraft maker Senior and infrastructure investor John Laing are among UK firms targeted by US investors.

According to Dealogic, a data provider, foreign private equity investors have spent more than in any year since 2021.

Modwen, an FTSE-250 member for mid-size businesses, was struggling to reduce the value of residential land and retail properties during the coronavirus epidemic, and he was losing £120 million in November at the end of 2010.

The company had already reduced exposure to the physical retail and office facilities and initiatives for land rehabilitation, such as the former Longbridge MG Rover plant in the West Midlands. It focuses instead on two sectors benefiting from pandemic trends: the growth in internet supply and home prices.

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