The acquiring company is set to buy 54,694,121 Sigma shares, representing nearly 61% of its existing issued share capital
Edinburgh-based residential development company Sigma Capital has accepted an offer from property private equity firm PineBridge Benson Elliot which values the group at £188.4m.
A statement explained that during late 2020, in light of the progress Sigma had made during the year, its directors decided to review their strategic options.
In order to deliver its next phase of growth, Sigma stated that it requires consistent access to capital to invest in scale into UK private rented property sector, growing through forming new house builder partnerships and expanding operations into new regional markets.
The directors believe the acquisition will accelerate Sigma’s business at a rate, which would be otherwise difficult to achieve as a standalone AIM-listed company.
PineBridge Benson Elliot stated that it believes that Sigma is a market-leading, vertically-integrated private rented sector delivery and operating platform, which benefits from a leading position in the rapidly growing UK single-family rental market.
Having delivered around 5,400 homes to date, Sigma’s platform recently entered into new long-term partnerships with housebuilder delivery partners and end investors in the UK, with expansion plans to deploy further capital towards new opportunities.
The acquiring company is set to buy 54,694,121 Sigma shares, representing approximately 61% of its existing issued share capital. The deal is expected to conclude during the third quarter.
Graham Barnet, chief executive and founder of Sigma, said: 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.
Joseph De Leo, managing partner of PineBridge Benson Elliot, said: Having spent the last number of months growing our understanding of the Company’s many strengths and its strategic priorities as it strives to unlock its potential, we believe that the combination of our capital backing; strategic support; deep expertise; and track record can be an effective catalyst for achieving Sigma’s growth ambitions over the coming years.
