Private equity firm Lone Star increased its offer yesterday
Lone Star has reached an unconditional agreement to buy Wembley developer Quintain, after upping its offer to £745m yesterday.
In a statement to investors this afternoon Quintain said it had received 76% approval for the new deal from shareholders, above the 75% threshold required.
Under the nincreased cash offer, Quintain shareholders will receive 141 pence per Quintain share, 10 pence more than the original 131 pence per share offer.
The purchase is being made through Lone Star’s investment vehicle Bidco, which is indirectly controlled by Lone Star Real Estate Fund IV.
Quintain’s board issued a statement earlier this afternoon recommending the improved offer to shareholders.
The improved offer came after hedge fund Elliott Capital Advisers took a 12.9% stake in Quintain via a contracts-for-difference arrangement
At the close of the second deadline at 1pm on 23 September, Bidco had received acceptances for the cash offer from 71.73% of the existing shareholding of the firm.
Bidco had at the end of last week lowered the acceptance threshold of the offer from 90% to 75%, having originally only received a 53% take up of its offer.
Lone Star has said its offer would allow Quintain to more rapidly build out its Wembley development. According to The Times, Elliott Capital Advisers believed the original offer “substantially undervalues the company [Quintain]” and does not accept it.
Bidco is financing the increased cash offer through a combination of equity to be invested indirectly by Lone Star Real Estate Fund IV and debt to be provided under the Credit Agreement.