Dallas, Texas 07/22/2014 (FINANCIALSTRENDS) – Jersey-based Max Property Group Plc (NYSE:MAX) with diverse range of valuable real estate assets has confirmed that it will be bought by New York-based Blackstone Group LP (NYSE: BX) for $707million, in cash. The most important aspect of the deal is the cash transaction, if one were to analyze MAX’s strategic sell-out.
Max Property Group had committed to sell-out of it’s assets to a suitor in two parts or phases.
However, the cash offer by the fund-rich Blackstone definitely proved to be less-risky and also worked to its favor. The company will now place the proposal of the acquisition before its shareholders. The concern according to company resources was to ensure shareholders would receive maximum benefit with the sale and preferably in cash form.
The official statement by Max Property Group Plc (MAX) reveals that, “The interests of all shareholders are best served with an earlier disposal in a single and fast transaction with low execution risk.”The acquisition of Max Property, if approved by shareholders will also allow for the distribution of amount the company had already announced – 33 million pounds.
Blackstone Group LP (NYSE:BX) will not make the purchase directly, but will work through its subsidiary, Marina Topco Ltd to finalize the acquisition. As news of the acquisition broke, Max property stock posted remarkable gains, almost reaching its previous high in October 2012 last. The gain was in the region of 7.6% during the London trading sessions. Max Property now has a market value of 367 million pounds.
Max Property has been in the business of purchasing and developing UK properties for resale post expensive renovations. Max Property has been remarkably successful in selling such renovated properties for profits, as per its publications on its website.
Blackstone Group LP (NYSE:BX) under CEO Stephen Schwarzman currently holds $80.4 billion in real estate assets which includes $10 billion in debt.