Marston’s rejects takeover offer from private equity firm

The board of UK pubco Marston’s has unanimously rejected a takeover bid from US private equity firm Platinum Equity Advisors, stating it “very significantly undervalues” the company.

Marston’s confirmed reports in the media that it had received an “unsolicited non-binding proposal” from Platinum at the end of last month.

In a statement published yesterday, it confirmed that it had considered the proposal, which values Marston’s shares at 105 pence each, equating to an offer of some £690 million.

Marston’s said its board had rejected the proposal, which followed two earlier offers at 88p and 95p per share put forward in December. Both of these earlier offers were received prior to Marston’s announcement that it was to takeover running of Welsh brewer Brains’ pub portfolio.

Marston’s said Platinum’s latest offer represents a 19% discount on the company’s share price at the start of 2020 before coronavirus struck.

Since then, it has completed on a “transformative joint venture” with Carlsberg, which was valued at £750 million. 

The pubco said the deal “realised significant value on completion and is anticipated to continue to do so as the benefits of the joint venture are realised”.

Platinum has until 26 February to make a formal offer.