Private equity firm PineBridge agrees Sigma takeover at $266m

Sigma has agreed to be bought by a subsidiary of real estate private equity specialist PineBridge Benson Elliott for around $266m in cash.

The London-listed developer said its board and Six Bidco, the entity through which PineBridge will make the acquisition, have agreed an offer of 202.1 pence per share, a 36 per cent premium to Sigma’s closing price yesterday. 

Sigma launched a review of strategic options late last year and has now said the PineBridge offer represents the most attractive deal for its shareholders. 

The offer presents an opportunity for Sigma Shareholders to crystallise a meaningful premium today to various share price based metrics and the Independent Sigma Directors intend to recommend the offer unanimously,” David Sigsworth, senior independent non-executive director. 

“The Independent Sigma Directors believe Bidco and PineBridge Benson Elliot can provide Sigma with the platform required to capitalise on the significant market opportunity in the UK residential real estate sector.”

The deal remains subject to approval of independent shareholders.  “We know the team well and believe that our complementary skills, experience and sector knowledge, as well as PineBridge Benson Elliot’s capital backing, will make a powerful combination, and enable Sigma to expand its activities significantly,” chief executive Graham Barnet said.

PineBridge managing partner Joseph De Leo added: “Sigma operates in an important part of the market that has shown remarkable resilience over the past year and, in partnership, we can further build on the successful UK housing platform the Sigma team have established.” 

“We are pleased that the independent members of the Sigma Board have unanimously recommended our proposal and that the major Sigma shareholders have endorsed the Board’s decision by adding their strong support.”

Source: City A.M.