The Board of Max Property Group announces the proposed disposal of its property business to Marina Topco Limited, a company controlled by Blackstone Real Estate Partners Europe IV and its affiliates, in a deal valuing the Group at £447.7 million (approx. €566 mln), equivalent to an enterprise value for the Group of more than £650 million (approx. €822 mln).
The proposed transaction comprises the sale for £414.2 million (approx. €521 mln) in cash of MPG Opco, a wholly owned subsidiary of the Company which owns the entire property business of the Group. The price excludes £33 million (approx. €41 mln) cash being returned by the Company to Shareholders on 23 July 2014.
Following the Sale, the business of the Group will be substantially complete and the Board proposes to oversee a liquidation process during which the majority of the net cash proceeds of the Sale will be distributed to Shareholders at the earliest opportunity. This is currently expected to amount to a distribution of 168.7 pence per share on 21 August 2014 (this being in addition to the 15 pence per share payable on 23 July 2014). At the conclusion of the liquidation a final distribution of up to a further 0.4 pence per share will be made.
Having received an approach from Blackstone offering a cash price at a level that the Board believes represents an attractive return for investors, the Board has given careful consideration to the net returns for Shareholders, weighing up the offer in the context of the level and timing of the cash return and risks inherent in delivering a piecemeal disposal of the Group over approximately the next two years.
Ken Caplan, Head of European Real Estate at Blackstone, commented: “We are excited to be entering into this transaction with Max as it reflects our continued confidence in the strengthening UK markets. These properties are great additions to our London office portfolio as well as our growing UK industrial and logistics platform.”
Source: Max Property Group