Dallas-based Lone Star agreed to pay 131p in cash for each Quintain share. It pledged to contribute “significant additional financial resources” to help Quintain build “more homes more quickly” at Wembley. The directors of Quintain voted unanimously to recommend that shareholders accept the offer.
The British property firm owns the land around Wembley Stadium, where it is building 5,500 homes over the next decade, along with shops and restaurants. A Hilton hotel, outlet centre and cinema have already opened. The developer will apply for planning permission for the 43 acres on the Eastern Lands at Wembley Park towards the end of this year.
Shares in the FTSE 250 company leapt 24.5% during the day to 133.5p – above the offer price – suggesting there are hopes of a rival bid. They closed at 131p.
Analysts at Liberum Capital said: “The offer understates the long-term value potential of Quintain, should it continue its current trajectory of residential sales and achieve planning to increase its residential consent on the Eastern Lands at Wembley Park.”
Quintain’s chief executive, Maxwell James, has been overhauling the business since the credit crunch hit it hard, selling assets and reducing debts to focus on London. The company has also sold off 18 acres next to the O2 in the Greenwich Peninsula.
Lone Star’s Angus Dodd 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.”
This article was written by Julia Kollewe, for theguardian.com on Wednesday 29th July 2015 13.07 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010