U.S. private equity firm Platinum Equity Advisors have announced that will not submit a revised takeover offer for pub company Marston’s after its initial £666 proposal was rejected for being too low.
In response, Marston’s, the brewer of Pedigree, Hobgoblin and Lancaster Bomber beer, said it believes the company was well-placed to benefit from the opportunities in a post-coronavirus trading environment.
Marston’s shares, which had gained roughly a third in value since the proposal was announced last week, dropped 11% to 88.50 pence by 0809 GMT. Platinum Equity’s proposed price-per-share offer was 105 pence.
In a statement the Board of Marston’s PLC (“Marston’s” or the “Company”) said that it notes the announcement by Platinum Equity Advisors, LLC (“Platinum”) dated 11 February 2021, confirming that Platinum does not intend to make an offer for the Company.
Adding “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.”