The private equity firm has made a cash offer of 542p per share valuing the company at around £1.2bn.

The offer represents a 21.1% premium on St. Modwen’s closing share price of 448p yesterday.

The Board of St. Modwen has indicated to Blackstone that the offer is at a value it would recommend unanimously to shareholders.

Both sides are now working on the small print and “a further announcement will be made as appropriate.”