CBRE, the world’s largest real estate services firm, is set to snap up Telford Homes in a £267m deal.
The all-cash deal for 350 pence per share represents a premium of about 11.1% to Telford’s closing price on Tuesday. Telford Homes’ shares soared on the news.
Telford Chair Andrew Wiseman said: “The board believes the offer from CBRE represents fair value for shareholders in light of Telford Homes’ market positioning, the current operating environment, and the underlying value of Telford Homes’ site portfolio and pipeline.
“The board remains confident in the long-term prospects of the business, however, the board also recognises the risks posed by the political and macro-economic environment, as well as the already stated impact on the group’s short and medium-term profitability from the implementation of its new build to rent strategy, which is lower margin in nature,” he continued.
“The offer allows Telford Homes shareholders to obtain liquidity for their full investment at a meaningful premium to the prevailing share price. The board believes the offer of 350 pence per share is a good outcome for shareholders and intends to recommend unanimously they accept this offer.”