Cyprus Mail
Britain Business Europe International

Revised offer for British supermarket group Morrisons accepted

morrissons uk sale fortress

British supermarket group Morrisons has agreed to an improved takeover offer worth 6.7 billion pounds ($9.3 billion) in cash from a consortium led by Softbank-owned (9984.T) Fortress Investment Group, it said on Friday.

The new Fortress offer comprises 270 pence per Morrisons share plus a 2p a share special dividend and is aimed at warding off a possible counteroffer by U.S. private equity group Clayton, Dubilier & Rice (CD&R).

“(Fortress) remains committed to becoming the new owner of Morrisons and to being a responsible long-term steward of this great British company through the next stage of its evolution,” it said.

Morrisons said its board had re-confirmed its unanimous recommendation of the offer.

The board had previously agreed a Fortress offer worth 254p a share or a total of 6.3 billion pounds on July 3.

However, major Morrisons investors Silchester, M&G and JO Hambro all indicated that offer was too low.

CD&R had a 230p a share proposal worth 5.52 billion pounds rejected by Morrisons on June 17.

Britain’s Takeover Panel, which regulates corporate takeovers, has set an Aug. 9 deadline for CD&R to come back.

Shares in Morrisons were up 2.5% at 278.75p by 1055 GMT – a premium to the latest offer – on hopes that it will.

Shareholders in Morrisons are due to vote on the Fortress bid on Aug. 16.

To pass, the offer needs the support of shareholders representing at least 75% in value of voting investors at the meeting.

Analysts have speculated that Amazon (AMZN.O), which has a partnership deal with Morrisons, could still enter the fray.

Related posts

Company insolvencies in England and Wales return to pre-lockdown levels

Reuters News Service

Half-shredded Banksy fetches $25.4 mln on return to Sotheby’s

Reuters News Service

New strategy launched to attract investors

George Psyllides

Bitcoin ups and downs in 2021

CM Guest Columnist

Germany’s SPD, Greens and FDP leaders want formal coalition talks

Reuters News Service

Norway bow-and-arrow attack suspect transferred to health services

Reuters News Service