Thursday, March 28, 2024 | Ramadan 17, 1445 H
broken clouds
weather
OMAN
23°C / 23°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Morrisons investors to vote on Fortress offer on Aug 16

Flags fly outside a Morrisons supermarket in New Brighton. - Reuters
Flags fly outside a Morrisons supermarket in New Brighton. - Reuters
minus
plus

LONDON: Shareholders in British supermarket group Morrisons will vote next month on a £6.3 billion agreed takeover offer from a consortium led by the SoftBank-owned Fortress Investment Group .


A scheme document outlining Fortress' offer, published on Thursday, said a court meeting and a general meeting of shareholders would be held on August 16 at Morrisons' headquarters in Bradford, northern England, and online.


To go through, the offer needs the support of shareholders representing at least 75 per cent in value of voting shareholders at the meeting.


The Fortress offer is worth 254 pence a share, made up of 252 pence in cash and a 2 pence a share special dividend.


Morrisons - Britain's fourth largest supermarket group after Tesco, Sainsbury's and Asda - aims to have the takeover become effective on August 26, with the special dividend paid two weeks later.


Shares in Morrisons were flat at 265.3 pence on Thursday.


The offer from Fortress, along with Canada Pension Plan Investment Board and Koch Real Estate Investments, exceeded a £5.52 billion unsolicited proposal from Clayton, Dubilier & Rice (CD&R), which Morrisons rejected in June.


CD&R could still make a higher offer. Analysts have speculated that Amazon, which has a partnership deal with Morrisons, could also enter the fray.


Britain's Takeover Panel, which regulates corporate transactions, said on Thursday it had given CD&R until August 9 to announce a firm intention to make an offer or walk away - a so-called "put-up or shut-up" order.


A third private equity suitor Apollo Global Management said on Tuesday it would not pursue a solo offer for Morrisons but could join the Fortress consortium.


Morrisons said it and Fortress were also in talks with the trustees of Morrisons' pension schemes.


It said Fortress had confirmed it appreciated the importance of the schemes as key stakeholders and that it recognised the need to maintain support currently provided to them and that this required mitigation to be agreed.


"Discussions are continuing with the trustees to agree appropriate mitigation and the trustees have stated their intention to issue their opinion on the Fortress offer in due course," Morrisons said. - Reuters


SHARE ARTICLE
arrow up
home icon