Lone Star has responded to Elliott Capital Advisors’ 11th hour intervention over its attempted takeover of Quintain, the listed London residential property developer, by increasing its overall all cash offer by £45m to £745m, increasing the offer to shareholders by 10 pence per share to 141 pence for all Quintain shareholders.
The offer is valid for all shareholders, including shareholders which have already in principle agreed to sell to Lone Star.
The offer document states that this final offer will not be further increased or extended beyond the revised schedule of 1pm 10 October UK time.
Quintain’s share price has immediately spiked on the news, rising by 9.4p, or just under 7%, in early trading this morning to 140.5p per share – virtually in step with Lone Star’s revised cash offer.
The increased cash offer for the residential London property developer will be financed by Lone Star equity alongside a £425m term facility already lined up by relationship lender, Wells Fargo.
Lone Star’s acceptance stalled following Elliott Capital’s gatecrash of the Quintain takeover – remaining at 71.7% as of 5pm yesterday afternoon, just over 3% shy of the required 75% approval needed for Lone Star to convert the offer into an unconditional one and de-list the company.
Elliott Capital was not immediately available for comment.
CoStar News reported an analysis of the possible motives behind Elliott Capital’s move yesterday, which can be seen here.