Quintain Deal Imminent
According to The Guardian, the Dallas-based firm has made a 113-pence per share offer and the Quintain directors have unanimously recommended that shareholders accept it.
The deal values Quintain, which was established in 1992 and floated on the London Stock Exchange four years later, at about £600 million. In 1999, it acquired more than 18 acres of land on the Greenwich Peninsula shortly before the Millennium Dome was officially opened.
After the initial poor performance of the Dome as a visitor attraction, the site’s subsequent redevelopment became a big commercial success, leading to a lucrative sale of Quintain’s interest to Knight Dragon, a Hong Kong property company.
Lone Star is reportedly willing to plough in more cash to build “more homes more quickly” around the Wembley site, where Quintain owns parcels of land. It’s currently trying to build 5,500 homes over a 10-year period, and has already completed a Hilton hotel, outlet centre and cinem. Quintain is expected to seek outline planning permission for a further 43 acres of land in the area by the end of the year.
Shares in the London-based property leapt 24.5 percent on the FTSE to 133.5p – above the offer price – suggesting that other potential bidders may be lurking in the wings.