Pub group Marston’s rejects Platinum Equity’s 666 million pound buyout offer By Reuters

(Reuters) – British pub operator Marston’s on Monday rejected a 665.8 million pound ($909.88 million) takeover proposal from Platinum Equity Advisors, saying the offer “very significantly undervalues” the company.

The offer of 105 pence per share represents a premium of around 40% to the closing price of the company’s stock on Thursday, a day before Marston’s publicly confirmed the approach.

But Marston’s, which has been forced to shut its pubs under Britain’s latest lockdown, said the private equity firm’s offer was 19% lower than its pre-coronavirus share price.

Shares in the London-listed company were up 3.8% at 85.45 pence at 1557 GMT.

The proposal followed two earlier offers of 88 pence and 95 pence per share in December 2020, both of which were unanimously rejected by the board, the company said.

Marston’s, the brewer of Pedigree, Hobgoblin and Lancaster Bomber beer, confirmed last week that it had received an unsolicited proposal from Platinum Equity for a possible cash offer.

Platinum Equity did not immediately respond to a request for comment.