Just under 80% of McCarthy & Stone’s shareholders voted for the global investment firm’s cash offer at 120p per share, up from the 115p bid originally announced. This values McStone at around £647 million.
Lone Star’s takeover of the retirement giant will be undertaken through a scheme sanction hearing, expected to take place early next year.
At the time of the bid announcement on October 23, Lone Star said the acquisition represented an “attractive opportunity” to gain exposure to the retirement living sector. It added that it recognised McStone’s progress in implementing its strategy “to become the UK’s leading developer, owner and manager of retirement communities with best in class customer satisfaction rating”.
Paul Lester, McStone’s chairman, said: “The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in McCarthy & Stone in the near term and also provides a meaningful premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment.”
Covid-19 has significantly impacted McStone’s business. Last month (November), in a trading update for its year ending October 31 2020, the firm said its total completions stood at 832 units against the 2,402 achieved during the equivalent period last year.
