Lone Star Agrees to Acquire Quintain in £700M Deal
July 30, 2015
Lone Star Funds has reached an agreement to acquire U.K.-based property investment company Quintain Estates & Development (LSE: QED); on a fully diluted basis, the transaction values the company's entire share capital at £700 million. Quintain shareholders will receive £1.31 in cash per share, representing a nearly 30% premium to the volume weighted average share price over the six months ended July 28. Lone Star's investment will come from Bidco, an investment vehicle indirectly controlled by Lone Star Real Estate Fund IV, which closed on $5.8 billion in May. Quintain operates through three business segments: residential sales, residential investment and commercial investment. As of March 31, its properties had a NAV of £639.4 million.