1st Feb 2021 16:03
(Alliance News) -Â Marston's PLC on Monday said it has rejected Platinum Equity Advisors LLC's unsolicited 105 pence-per-share takeover approach.
With 660.4 million shares in issue, according to Marston's website, the offer values the firm at GBP693.4 million. Shares in the pub operator were up 4.7% at 86.20 pence in London on Monday, and the stock has fallen 17% over the past 12 months.
The board "unanimously" rejected the non-binding proposal on the basis that it "very significantly undervalues" Marston's.
"The proposal followed two earlier proposals at 88 pence and 95 pence per share in December 2020, both of which were received prior to the Brains transaction, and were unanimously rejected by the board," said Marston's.
Marston's in December said it would operate 156 SA Brain & Co Ltd pubs on a combination of leased and management contract arrangements after the Cardiff-based family business came under significant financial pressure from the pandemic.
Marston's noted that the takeover proposal represents a 19% discount to its share price at the start of 2020, and since that time it has completed a "transformative" joint venture with Carlsberg.
Platinum has until February 26 to either announce a firm intention to make an offer for Marston's or walk away.
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Marstons