18th Dec 2019 09:45
(Alliance News) - Industrial property portfolio manager Hansteen Holdings PLC has agreed to a GBP500 million private equity takeover, it said on Wednesday.
Hansteen has accepted a 116.5 pence per share bid from Potter UK Bidco Ltd, a company indirectly owned by investment funds advised by affiliates of US-based private equity firm Blackstone Group Inc.
Blackstone bid is a 10% premium to Hansteen's closing price in London on Tuesday of 105.6p, and an 18% premium to the volume-weighted average price for the three months to Tuesday of 98.7p. Hansteen was 11% higher on Wednesday morning at 117.43p.
Some 75% of shareholders need to approve the deal, Hansteen said, with a meeting expected to be called for early February. Hansteen would then expect the takeover to complete during the first quarter.
Ian Watson and Morgan Jones, the joint chief executives of Hansteen, commented: "We founded Ashtenne in 1989, floated the business in 1997 and successfully sold it in 2005. Throughout the life of the business we regarded our shareholders and ourselves in a joint enterprise to build and ultimately crystallise the value we created.
"Following that successful realisation, in early 2005 we floated Hansteen to create a similar business to Ashtenne, firstly in continental Europe and, as values fell, in the UK as well. Many Ashtenne shareholders followed us into Hansteen and have remained with us since. Again our philosophy has been to work with our shareholders, who supported six successful fundraisings, enabling us to acquire opportunity-rich properties in the early stage of the cycle. This included acquiring the core of Ashtenne's team and properties."
"Over the last few years we have been crystallising much of the value created, returning substantial capital and making high returns for shareholders. The offer from Blackstone is a continuation and conclusion of that strategy and we believe provides a highly satisfactory outcome for our shareholders and employees. We have given irrevocable undertakings to vote in favour of Blackstone's offer in relation to our own shareholding," they continued.
Earlier in December, shareholders of Hansteen voiced their disapproval at the re-election of Chair Melvyn Egglenton, with some 37% rejecting the motion. Hansteen believes this was due to the lack of any women on the board.
It currently has six board members, with the sole female member, Margaret Young, leaving at the end of 2018. Hansteen said it did not replace her due to a sharp fall in the company's net assets.
In its most recent results, for the first half of 2019, Hansteen reported a 35% fall in pretax profit as revenue fell 8.4%. Net asset value rose, however, by 1.7%.
By George Collard; [email protected]
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