The boards of directors of Bailey Acquisitions and Quintain Estates and Development – the developer of Wembley Park – have reached agreement on the terms of a recommended cash offer for Quintain.
Bailey is an investment vehicle indirectly controlled by Lone Star Real Estate Fund IV, an American investor, and under the terms of the deal will acquire the entire issued and to be issued share capital of Quintain for 131 pence per share – a premium of over 20% on the closing share price the day before – valuing the business at approximately £700 million.
Commenting on the Offer, Angus Dodd, of Lone Star Europe Acquisitions LLP (an advisor to Lone Star Real Estate Fund IV), said: “Wembley Park is one of the largest and most exciting urban renewal projects in Europe and complements our experience in this segment of the market. We intend to contribute significant additional financial resources to help Quintain in its next phase of growth: to accelerate delivery at Wembley Park, building more homes more quickly and continuing the creation of a cohesive and
exciting new community.”
Maxwell James, Chief Executive of Quintain, said: “Since 2012, Quintain has undergone a major transformation which has seen the business dispose of non-core assets, progressively rebalance the business to focus on London and materially de-gear the balance sheet, creating a strong platform for growth. The Offer from Bidco crystallises value for shareholders at an early stage whilst enabling Quintain’s vision for Wembley Park to be accelerated through the addition of significant financial resources, creating more mainstream homes in the Capital more quickly than would otherwise be possible.”