American group pulls out of Marston's takeover
American investors have pulled out of attempts to takeover Wolverhampton-based pubs and restaurants group Marston's.
Shares in Marston’s tumbled on Thursday morning after Platinum Equity Advisors said it will not make a firm offer.
The Marston’s board had previously unanimously rejected three proposals from Platinum to buy all its shares.
Its highest proposal had been 105p a share, which would have valued the group at £693 million and followed offers of 88p and 95p per share.
The board had rejected the last proposal on the basis that it very significantly undervalued Marston’s.
Platinum had a deadline of February 26 to either announce a firm intention to make an offer for the company or announce that it did not intend to make an offer.
It comes as all of Marston’s 1,368 pubs remain shut to customers due to the national coronavirus lockdown.
On Thursday, Marston’s said it believes it is “well placed” to benefit from potential growth opportunities after coronavirus restrictions are relaxed.
It told investors that it hopes to be buoyed by the increase in home-working, which will benefit pubs in suburban locations.
Shares in the company were 12.8 per cent lower at 86.8p in early trading.
A statement from 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."
Marston’s has signed a contract to take over the running of 156 SA Brain pubs in Wales, and last year completed the joint venture with Carlsberg to create the Carlsberg Marston’s Brewing Company.
The joint venture is worth around £780 million and Marston's has a 40 per cent stake.
