Wembley developer Quintain gets increased £700 million bid from Texan buyout firm LonestarComments Off on Wembley developer Quintain gets increased £700 million bid from Texan buyout firm Lonestar
Texan private equity group Lone Star has raised its £700 million offer for Wembley developer Quintain.
The company said it would pay 141p a share, or £745 million, for the developer whose portfolio includes land around Wembley Stadium.
Previously it had offered 131p a share.
The offer represents a premium of almost 32% to Quintain’s closing price on the day before Lone Star’s first approach.
The Texans, who want access to one of London’s few remaining large-scale redevelopment sites, have upped the ante a day after it was revealed that New York activist investor Elliott Advisors had gatecrashed the deal.
Elliott has gained control of almost 13% of Quintain shares through contracts for difference.
Lone Star made clear that it would not be pushed into increasing the offer further. Shareholders have until October 10 to accept Lone Star’s price, and the Texan group needs 75% acceptances to delist the company.
Its original offer represented an 8% premium to net asset value (NAV) for the property company, whose shares have been trading below NAV for some time.
Since Lone Star’s approach, Quintain shares have been hovering around the original offer price and there has been concern from some shareholders that the full value of the Wembley land was not reflected in the offer price.