Permira, Barclays increase McCarthy & Stone bid to £1.059bn

Permira and Barclays Capital have matched a rival consortium’s 1,030 pence per share offer rejected by UK housebuilder McCarthy & Stone last week.

European buyout firm Permira and Barclays Capital, the investment banking arm of the UK bank, have  increased  their recommended offer for McCarthy & Stone to match the bid recjected by the UK retirement homes builder last week.
 
The board of directors at McCarthy & Stone has now recommended the revised offer of 1,030 pence per share, an advance on the 1,000 pence bid approved by the board on 17 July.
 
Broomco, a consortium including West Coast Capital’s Sir Tom Hunter, Bank of Scotland and the Reuben brothers, said in a statement today that it had noted the revised offer from Permra’s consortium and was urging shareholders to “take no action at this time”.
 
The 1,030 pence per share offer values McCarthy & Stone at £1.059 billion (€1.55 billion). McCarthy & Stone shares were trading at 1,050 pence at 10am BST, up from Thursday’s closing price of 1,040. 
 
Hunter’s 1,030 pence offer last week stalled on the basis that Permira’s recommended offer included a £10 million break fee should the deal break down and also precluded McCarthy & Stone from offering a break fee to rival bidders.
 
Last weekend, UK newspaper The Daily Telegraph reported that Vincent Tchenguiz, a property tycoon, was preparing to make a rival bid for the housebuilder having dropped out of the running earlier this year when he reportedly lost support from Sun Capital, a UK private equity firm, and hedge fund Och-Ziff.