American private equity firm Lone Star Funds upped its bid for Britain’s largest retirement home builder McCarthy & Stone and the shareholders have accepted.

Dallas-headquartered Lone Star offered 120p a share, up from 115p. This now values the company at £647 million up from £630 million for the original offer.

McCarthy & Stone said 79.94% of shareholders approved the proposal which had been recommended by the directors of the company.

In October, when the deal was announced McCarthy & Stone’s chairman Paul Lester, said: “We believe that Lone Star would provide a complementary partner for McCarthy & Stone’s stakeholders and along with the investment in the business that Lone Star can provide, will enable further improvements of its transformation strategy and allow McCarthy & Stone to capitalise on its growing rental and multi-tenure offering which would underpin the long-term growth of McCarthy & Stone.”

Date published: December 9, 2020

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