Urban & Civic £123m Share Sale, UK
2018
STJ advised GI Partners on its clean-up trade in Urban & Civic, a London-listed property development and investment company that aims to deliver strategic developments in key growth areas of the UK. The transaction raised £123m representing 27.9% of the Company - equal to a substantial 173 days of average trading volume on the stock exchange (the average for ABBs YTD is c. 52 days). STJ advised on all key aspects of GI Partners’ exit including consideration of alternative sale options, timing and structure of the transaction, identification and targeting of incremental research coverage, bank selection, assessment of demand, sizing and pricing.
STJ advised GI Partners over a period of 11 months, during which there was a marked pick-up in activity around the stock including three additional research analysts initiating research and a share price increase of 39% to an all-time high on 29th June. Following a period of strong share price performance post the release of full year results and a well-received management roadshow, STJ advised GI Partners to embark on an accelerated book built offering to monetise its ordinary share holding in Urban & Civic.
The transaction launched shortly after market close on Monday 9th July after a comprehensive wall crossing exercise, closing during the afternoon of Tuesday 10th July. At launch investors were guided towards an offering of at least half of GI Partners’ stake at a fixed price of 305p, a discount of 6.7% to the 327p close or a 2.4% discount to the 3 month VWAP. Strong demand led to the offer size being increased to the entirety of GI Partners’ remaining holding. The shares were placed with a high quality group of investors including both new investors and existing investors increasing their positions.
This is the 6th equity sale advised by STJ this year, totalling over €4.3 billion.
