By Joe Hoppe
St. Modwen Properties PLC said Friday that it has received a nonbinding conditional proposal from Blackstone Group Inc. for a cash offer of around 1.21 billion pounds ($1.68 billion).
The U.K. property investor and developer said that Blackstone has made a possible cash offer of 542 pence a share for the entire issued capital of the company--around 222.63 million shares--after a series of unsolicited proposals. The price represents a 21% premium to St. Modwen's closing share price of 448 pence on Thursday and a 24% premium to St. Modwen's 2020 net tangible assets per share.
The possible offer is at a value it would be willing to unanimously recommend if Blackstone announces a firm intention to make an offer, St. Modwen's management said. Any offer is subject to preconditions, including due diligence.
There is no certainty that Blackstone will make a firm offer, and according to the takeover code Blackstone have until June 4 to say it will make a firm offer or walk away.
Blackstone confirmed the possible offer in a separate release.
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(END) Dow Jones Newswires