LONDON (dpa-AFX) - U.S.-based private equity investment firm Platinum Equity Advisors LLC said Thursday that after careful consideration, it does not intend to submit a revised proposal and it
Feb 1, 2021
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Platinum Equity Advisors had proposed paying 105p a share for the Wolverhampton-headquartered listed business.
It was revealed on Friday that the board had received an unsolicited non-binding proposal from Platinum for the entire issued, and to be issued, share capital of Marston’s.
The board considered the proposal of 105p with its advisers and unanimously rejected that on the basis that it very significantly undervalues Marston’s.
It followed two earlier proposals at 88p and 95p per share in December, both of which were received before Marston s signed a contract to take over the running of 156 SA Brain pubs in Wales. Both were also unanimously rejected.
The most recent proposal follows two earlier proposals, at 88p and 95p per share in December.
Both were received prior to Marston s
Marston s said the latest offer represents a 19% discount to the company’s share price at the start of 2020, prior to the onset of the Coronavirus pandemic.
Since then Marston’s has
completed a joint venture with Carlsberg to create the Carlsberg Marston’s Brewing Company, which realised significant value on completion and is anticipated to continue to do so as the benefits of the joint venture are realised, according to the business
While the Brain’s deal, which will see the group operate the 156-strong Welsh pub portfolio on a combination of leased and management contract arrangements, is also expected to be accretive to earnings in the first full year of trading.
Last modified on Fri 29 Jan 2021 15.49 EST
The pub chain Marston’s has received a takeover approach from a US private equity group in a move that could fuel a spate of deals in the embattled hospitality sector.
The news of the all-cash offer from Platinum Equity Advisors prompted a 17% spike in Marston’s share price to 87p, giving the pub and brewing group a market value of £553m.
“The board of Marston’s confirms that it has today received an unsolicited non-binding proposal from Platinum Equity Advisors regarding a possible cash offer,” the company said in a statement to the stock market. “The board will evaluate the proposal with its advisers and a further announcement will be made in due course.”