Student accommodation investor-developer Unite Group has made a takeover approach to listed peer Empiric Student Property, valuing the target at £719m.
The proposed offer, comprising 30p in cash and 0.09 new Unite shares per Empiric share, represents a 10% premium to Empiric’s closing share price on 4 June. The offer values each Empiric share at 107p, a 24% premium to Empiric’s six-month average share price.
Unite has entered a due diligence period following the approach.
Unite believes the acquisition would enhance its presence in the UK student accommodation sector, particularly in postgraduate and returning student markets.
In a stock market notice, Unite said that the combined group would have a stronger foothold in the country’s top university locations and potential for earnings growth.
The company has until 3 July to confirm a firm bid.
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