A trio of private investment groups led by Fortress, owned by SoftBank, have reached a £ 9.5 billion deal to acquire Wm Morrison, Britain’s fourth-largest supermarket chain.
Under the terms of a deal unveiled Saturday morning, Fortress, Canadian pension fund CPPIB and a unit of Koch Industries will pay 252p per share as well as a special 2p dividend to buy the grocer. It values Morrisons’ equity at £ 6.3bn before the inclusion of £ 3.2bn in net debt.
The deal comes two weeks after the Bradford-based group said it rejected an unsolicited 230 pence-per-share approach from private equity group Clayton, Dubilier & Rice.
The Fortress-led offering values Morrisons shares at a 42% premium over their price before the company discloses CD&R’s approach. The deal marks the latest and most important example this year of the feverish pace at which private equity funds are taking over UK listed companies.
Andrew Higginson, Chairman of Morrisons, said: “We have taken a very careful look at Fortress’s approach, its plans for the business and its overall suitability as the owner of a unique UK food maker and trader with more than 110,000 colleagues and an important role in British industry. food production and agriculture.
He added: “It is clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons.”
More soon . . .
