St. Modwen accepts Blackstone bid

St. Modwen Properties has agreed to a £1.24 billion (€1.44 billion/$1.76 billion) takeover from Blackstone Group.

Chair Danuta Gray said, “Over the last four years, St. Modwen has successfully reshaped its business to focus on logistics and housebuilding. Whilst both sectors benefit from long-term structural growth trends, St. Modwen's financial position is strong and there is a solid strategy in place, the quantum and timing of generating shareholder value is naturally subject to execution risk.

“The board has therefore been able to evaluate today's recommendation from a position of strength. Mindful of the pace of capital growth in the U.K. logistics market in particular and the future growth potential in our logistics and housebuilding businesses, initial approaches were rejected.

“However, following careful consideration, we believe this offer is in the best interests of St. Modwen shareholders and significantly accelerates the value that could be r