£1.2bn deal for St Modwen is agreed
A deal for an American private equity and investment firm to buy Birmingham-based regeneration and construction group St Modwen has been agreed.
Blackstone, which also owns the NEC Group, will pay £1.2 billion for St Modwen's entire issued share capital at a cost of 542p per share.
The St Modwen board is recommending all shareholders to accept it.
St Modwen has its headquarters at Longbridge where it is leading the regeneration of the former home of MG Rover.
Chairman Danuta Gray said: "Over the last four years, St Modwen has successfully reshaped its business to focus on logistics and housebuilding.
"While both sectors benefit from long-term structural growth trends, St Modwen's financial position is strong and there is a solid strategy in place.
"Following careful consideration, we believe this offer is in the best interests of shareholders and significantly accelerates the value that could be realised if it were to remain independent."
James Seppala, head of Blackstone Real Estate Europe, added: "Our strong conviction in the UK, together with St Modwen's high-quality asset base, its team and its operational capabilities, give us confidence we can further build on the company's successes.
"We look forward to working with the talented team at St Modwen in the years ahead."
St Modwen has also launched an online consultation on West Longbridge, committing to further investment in Longbridge.
The plans to redevelop West Longbridge will deliver up to 5,000 new jobs as part of the vision for a new Longbridge Business Park and up to 395 new homes.
The West Longbridge site, which fronts onto the Bristol Road, will provide up to 900,000 sq ft of commercial space, as well as creating over 25 acres of green parkland set around the banks of the River Rea. In addition, a new 1.35km cycling and walking route will be created, connecting West Longbridge to Longbridge town centre and Rubery.
St Modwen bought the former MG site in the early 2000s and has delivered significant regeneration schemes across the area.
Information about the latest proposals can be viewed at www.regeneratinglongbridge.co.uk and feedback can be submitted until June 7.
Elliot Sellars, development director at St Modwen said: “Our proposals for West Longbridge outline our commitment to regenerating this historic suburb of Birmingham. We are keen to bring forward employment opportunities and new homes which echo the area’s rich heritage and will help shape the future of Longbridge.
“Our long-term commitment to the area is clear and West Longbridge provides us with a great opportunity to continue our investment in this community by delivering a major brownfield regeneration scheme.
“We want to hear the ideas and aspirations of those who call Longbridge home to help ensure that our vision for the site reflects their ambitions, so please get involved in the conversation.”
