Marston’s, the brewery, pub, and hotel operator, has rejected a takeover bid submitted by Platinum Equity, a US-based private equity investment firm.
The proposal, which represented 105 pence per Marston’s share, was “unanimously rejected” on the grounds that it “very significantly undervalues” the brand.
A regulatory statement from the firm revealed that two earlier proposals of 88 pence and 95 pence were also both rejected in December 2020.
According to the brewery, Platinum’s bid represented a 19% discount to the company’s pre-Covid-19 share price.
The firm believes it has since added value through the completion of its joint venture with Carlsberg, a deal that “realised significant value on completion and is anticipated to continue to do so as the benefits of the joint venture are realised”.
Moreover, a transaction that provided Marston’s with the operation of 156 SA Brains pubs across South and West Wales in December 2020 is “expected to be accretive to earnings in the first full year of trading”.
Platinum has been given until Friday 26 February 2021 to either make a subsequent offer or withdraw from the deal completely.
However, with equity firms queueing up for UK pub sector investment opportunities, a withdrawal from Platinum may not be the final play in a potential Marston’s takeover before Covid-19 restrictions begin to be lifted.