Lone Star declares Quintain offer unconditional, Elliott Capital to accept revised offer (updated)

Lone Star has directly acquired a 4.3% stake in Quintain this morning following this morning’s publication of its revised offer for all shareholders of £745m, or 141 pence per share, which lifts the private equity firm over the 75% threshold to declare its offer unconditional in all respects.

Lone Star logoLone Star’s 4.3% direct share purchase – plus the acceptance by 71.73% of shareholders – takes the private equity firm to 76.03%, without requiring Elliott Capital to help the deal get over the line.

The share were sold by at least seven seperate small shareholders, with more now expected to follow quickly. 

Asked for comment, Elliott Capital has confirmed to CoStar News on Friday afternoon that it will accept Lone Star’s revised offer.

The statement said: “Elliott is pleased that Lone Star has recognised the higher value of Quintain and intends to support the increased offer.”

Quintain will now be de-listed on 23 October and operate as a private company. Lone Star’s revised offer of 141 per share remains open for the remaining 23.95% of shareholders in Quintain until 10 October.

It is expected the vast majority will now likely sell their stakes to Lone Star at the 141p price over the coming two weeks. Any minority shareholders which do not sell will become minority stakeholders in the Lone Star-managed private Quintain property company.

This brings a swift resolution to the intervention by hedge fund Elliott Capital, which is expected to crystallise a rapid profit from its share purchase in Quintain this week through the acquisition of 67.9m of shares in five tranches.

Elliott Capital paid between 130.5 and 131.5 pence per share.

CoStar News reported Lone Star’s revised offer this morning and sought to look behind the potential motives of Elliott Capital move in an analysis yesterday, which can be seen here.


About CoStar News

Finance Editor, CoStar News
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