Quintain Estates surges on £700m Lone Star takeover offer

29th Jul 2015 09:32

(ShareCast News) - Quintain Estates surged 22% on Wednesday after the property investor confirmed that it was in talks with a US private equity firm Lone Star Real Estate Fund over a takeover deal.Under the terms of the offer, Quintain shareholders will receive 131p in cash for each Quintain share, which values the entire issued, and to be issued, share capital of the company on a fully-diluted basis at around £700m.The offer represents a premium of approximately 22.4% to the FTSE small cap-listed company's closing price of 107p on 28 July.Quintain, whose sites include Wembley Arena, said its directors, who have been advised by JPMorgan Cazenove and Lazard, consider the financial terms of the offer to be "fair and reasonable" and intend to unanimously recommend that shareholders accept it.Chairman William Rucker said: "The offer by Bidco [a takeover vehicle set up by Lone Star] delivers an attractive opportunity to unlock future value from the Wembley Park development at an early stage through the certainty of a cash offer priced at a premium to net asset value and the current share price."Bidco's offer enables our shareholders to accelerate and de-risk the realisation of value and recognises the transformation of Quintain over the last six years."