Platinum walks away from Marston’s bid
This came after the pub company rejected an offer from the US-based Platinum, which was rebuffed for undervaluing Marston’s.
The equity firm stated it has now decided not to continue pursuing the takeover after careful consideration.
Well placed
A statement from Marston’s said: “The board continues to believe Marston’s is well placed to benefit from the opportunities in a post-Covid 19 trading environment, following the completion of the SA Brain transaction and harnessing factors such as a reduction in on-trade supply and increased home-working that will benefit pubs in suburban locations.
“Marston’s has a strengthened balance sheet following the creation of the synergistic joint venture with Carlsberg and significant cash headroom, enabling it to continue to absorb the impact of the temporary Government restrictions.
“We welcome the continued nationwide rollout of the vaccine programme and look forward to rebuilding trading momentum once restrictions are lifted.”
Marston’s unanimously rejected Platinum’s bid earlier this month (February). The proposal of 105p per share was considered by the board at the pub company before it was unanimously rejected on the grounds it significantly undervalued the firm.
Previous offers
The latest offer followed two previously rebuffed bids of 88p and 95 a share at the end of last year (December 2020), which were received before Marston’s took on 156 SA Brains pubs.
It also represented a discount of almost a fifth (19%) to the Marston’s share price at the beginning of last year, before the coronavirus pandemic and the company has since completed the joint venture with Carlsberg to create the Carlsberg Marston’s Brewing Company.
The Wolverhampton-based pub company confirmed reports last week (Friday 29 January) that Platinum had made an initial approach to take Marston’s private.
It released a statement revealing its board would evaluate the proposal with its advisers and a further announcement will be made in due course.
“There can be no certainty that any firm offer will be made for the company, nor as to the terms on which any firm offer might be made,” it added.
