Blackstone Group has made a €1.38bn ($1.68bn) buyout proposal for St. Modwen Properties. The offer comes at a time when the housebuilder and logistics firm has seen a growth in warehousing demand due to an increase in online shopping during the COVID-19 pandemic. Shares in the London-listed firm climbed as much as 20%. The possible offer of 542 pence per share in cash was at a premium of about 21% to the stock’s last close. St. Modwen said its board would be willing to recommend the proposal unanimously should Blackstone make a firm offer at that price by the June 4 deadline.
Last year St. Modwen has recorded a loss of circa €140m (£120.8m), mainly resulting from the site closures during initial lockdowns in the UK in 2020. Financial activity and dealmaking have been picking up steam in 2021, with companies, private equity firms and special purpose acquisition companies all eyeing acquisitions this year after the onset of the COVID-19 pandemic.
Blackstone is currently performing due diligence on St. Modwen.