Empiric has now entered due diligence as it considers non-binding proposal
Unite Group has proposed buying smaller developer Empiric in a deal that would be worth £719m.
The former, which posted turnover of nearly £400m last year, submitted a proposal to buy Empiric Student Property of which 28% would consist of cash. The possible offer values each Empiric share at 107.0 pence.
A Unite spokesperson said the group believes the possible offer represents an opportunity to increase its appeal to students “for the duration of their academic journey in the UK, including in the returner and postgraduate segments”.
It said: “The addition of Empiric’s high quality, complementary portfolio would create a combined group with enhanced scale and growth aligned to the UK’s strongest universities.
“With the potential synergies that could be unlocked by Unite’s operating platform, the possible offer has the potential to deliver accretion to earnings and shareholder returns while maintaining balance sheet strength.”
>>See also: New building safety regime adding six months to delivery, says Unite Group
>>See also:Unite Students to enter £390m joint venture with Manchester Metroplitan University
Unite owns around 68,000 student beds, whereas London-based Empiric is smaller with 7,700 beds and posting turnover of £84m.
A spokesperson for Empric said: “On the basis of the proposal, the board has agreed with Unite to enter an initial period of due diligence.
“A further announcement will be made as appropriate.”
Both parties stressed that no formal offer has been made and the terms could change.
No comments yet