Lone Star has increased its offer for McCarthy & Stone to 120p per share, valuing the housebuilder at £647m.
Lone Star’s acquisition vehicle said the offer represents a premium of approximately 44.6% to the closing price of McCarthy & Stone shares on 22 October and marks an increase from its original bid for the business of £630m, or 115p per share.
McCarthy & Stone directors were said to consider the terms of the offer “fair and reasonable” and “unanimously recommend” shareholders vote in favour of the deal.
McCarthy & Stone reported a pretax loss of £91.3m for the six months to the end of April and revenue of £101.1m, which was down by almost two-thirds on the same period the previous year.
The firm said the financial impact of the Covid-19 crisis was likely to be felt even more acutely during the second half of the year.
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