GCP Student take-over bid by Gemini Jersey
Gemini Jersey have offered a full cash takeover bid for the GCP Student Residential Investment Trust. Shareholders will be given a vote to accept or reject the bid, with the newly formed consortium looking to take the company private if their offer is accepted. The bid stands at £2.13 per share, a new all-time high for the share price and a 18.95% premium over the company’s Net Tangible Assets (NTA) at time of offer – valuing the company at £969 million. The Trust’s NTA has, however, risen since the initial offer was made and subsequently the Trust’s premium has fallen to 9.23%.
The board is to recommend that shareholders accept the bid, despite the strong recent performance, as they feel threatened by rising COVID-19 cases and the fallout of Brexit – student accommodation being heavily impacted by the initial COVID-19 outbreak with universities pivoting towards distanced learning in the immediate aftermath. The board has however clarified that they feel confident in the Trust’s ability to out-perform in the long term if the bid is rejected, successfully negotiating a number of improvements to the proposition based upon this sentiment. Gemini Jersey are more optimistic about the sector in the short term when compared to the board.
27th August, 2021