Blackstone completes Southern Cross exit

Blackstone has sold its remaining shares in the care home operator for £169 million.

The Blackstone Group has completed its exits from nursing home operator Southern Cross, after selling its remaining 21.8 percent stake for £169 million.

Morgan Stanley said it had sold the 41 million shares on Blackstone’s behalf, via an accelerated bookbuilt placement.

The bank said the shares were sold for 412 pence each, their closing price on Thursday. At this price, the company would be valued the company at about £770 million.

Shares in Southern Cross have increased in value by more than 80 percent following its flotation on the London Stock Exchange last July, when Blackstone raised £175 million by selling 40 percent of its holding in the company at 225 pence per share.

It reduced its stake again by selling a further 26 percent in January, and has now cashed in fully following the expiry of its lock-in period.

Blackstone originally bought an 88 percent stake in Southern Cross in 2004 for about $2.2 billion.

At 15:11 GMT, Southern Cross were trading down 3 pence to 409 pence.