St Modwen accepts higher £1.27bn Blackstone offer

St Modwen Properties has agreed to a higher offer from Blackstone that values the property developer at £1.27bn.

Blackstone will pay 560p in cash for each of St Modwen's shares - 25.1% more than St Modwen's closing price on 6 May, which was the last day before the offer period started. The bid is worth 38.2% more than the company's average share price in the 90 days before 6 May.

The offer from Blackstone's Brighton Bidco vehicle is final and will not be increased unless another bidder emerges. St Modwen's board recommended that shareholders vote for the deal.

St Modwen accepted a 542p a share offer from Blackstone on 20 May, valuing the company at about £1.2bn. Blackstone and other US private equity groups have been snapping up UK companies they see as undervalued in the wake of Brexit and the pandemic.

"Bidco and St Modwen are pleased to announce that they have reached agreement on the terms of an increased and final* recommended cash offer by Bidco for the entire issued, and to be issued, ordinary share capital of St Modwen," the FTSE 250 group said. "The acquisition values St Modwen's entire issued, and to be issued, ordinary share capital at approximately £1,272m.