Platinum drops Marston’s takeover bid
The American private equity firm, which submitted an unsolicited, non-binding proposal to acquire the business last month that Marston's later rejected, said it had decided not to proceed after careful consideration.
In a statement, Marston’s said: “The board continues to believe that 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 industry 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.”
The board of Marston’s previously rejected the proposal of 105p per share, from Platinum, stating that it 'very significantly undervalued' the business.
The offer follows two earlier proposals, at 88p and 95p per share in December, both of which were received prior to the acquisition of brewer Brain’s 156 pubs, which was also unanimously rejected by the board at the time.
Marston’s said its joint venture with Carlsberg to create the Carlsberg Marston’s Brewing Company realised significant value on completion.
