Marston's has rejected a £666 million takeover proposal from Platinum Equity Advisors, saying that it significantly undervalued the British pub operator.
Marston's, which is the brewer of Pedigree, Hobgoblin and Lancaster Bomber beer, said that this was the US private equity firm's third takeover proposal, following offers of 88 pence and 95 pence a share in December, which it unanimously rejected.
Los-Angeles based Platinum Equity, which was founded in 1995 by American businessman Tom Gores, who owns the Detroit Pistons basketball team, did not respond to a request for comment.
Under stock market rules, Platinum now has until close of play February 26 to make a formal offer.
The British pub sector has been in decline for years and has been hit hard by forced closures during coronavirus lockdowns, as have restaurants and other leisure businesses.
Last year, Marston's said that it planned to cut up to 2,150 jobs and called for more government support after it posted an annual loss of £22 million.
On Monday February 1, the company highlighted its joint venture with the UK division of Danish brewer Carlsberg, saying that the deal realised significant value on completion last year and is anticipated to continue to do so.
It also played up its recent agreement to operate 156 SA Brain pubs in Wales, which it said is expected to boost its earnings.
Below Pre-Coronavirus Share Price
Platinum Equity's latest offer of 105 pence represents a premium of approximately 40% to Marston's closing price on Thursday January 28, a day before the British company publicly confirmed the approach.
But Marston's, which runs approximately 1,400 pubs, said that the offer is still 19% below its pre-coronavirus share price.