Marston's board rejects improved takeover bid
The board of pubs group Marston's has unanimously rejected a proposed takeover by American investors.
Platinum Equity Advisors had proposed paying 105p a share for the Wolverhampton-headquartered listed business.
It was revealed on Friday that the board had received an unsolicited non-binding proposal from Platinum for the entire issued, and to be issued, share capital of Marston’s.
The board considered the proposal of 105p with its advisers and unanimously rejected that on the basis that it very significantly undervalues Marston’s.
It followed two earlier proposals at 88p and 95p per share in December, both of which were received before Marston's signed a contract to take over the running of 156 SA Brain pubs in Wales. Both were also unanimously rejected.
The latest proposal represented a 19 per cent discount to the company’s share price at the start of 2020, before the start of the coronavirus pandemic.
Since then Marston's also completed the joint venture with Carlsberg to create the Carlsberg Marston’s Brewing Company, which realised significant value on completion and is anticipated to continue to do so as the benefits of the joint venture are realised. In December 2020 the
Platinum, is required, by no later than 5pm on February 26 to either announce a firm intention to make an offer for the company or announce that itdoes not intend to make an offer.
This deadline can be extended with the consent of the Takeover Panel.
