LONDON, July 3 (Reuters) – Morrisons (MRW.L) has agreed a takeover provide from Fortress Funding Group, which values Britain’s fourth largest grocery store operator at 6.3 billion kilos ($8.7 billion).
The provide from Fortress, which is backed by Canada Pension Plan Funding Board and Koch Actual Property Investments, exceeds the 5.52 billion pound proposal from U.S. personal fairness agency Clayton, Dubilier & Rice (CD&R), which Morrisons rejected on June 19, saying it was far too low. read more
Below the phrases of the deal, Morrisons shareholders will obtain 254 pence a share, comprising 252 pence in money and a 2 pence money dividend.
Morrisons, which trails UK market chief Tesco (TSCO.L), Sainsbury’s (SBRY.L) and Asda in annual gross sales, stated the provide represents a premium of 42% to its closing share value of 178 pence on June 18 – the final enterprise day earlier than CD&R’s proposal.
Shares in Morrisons closed on Friday at 243 pence, valuing the enterprise at 5.8 billion kilos.
Fortress is a world funding supervisor with about $53 billion in belongings below administration as of March.
Morrisons stated an preliminary unsolicited proposal was obtained from Fortress on Could 4 at 220 pence a share. This provide was not made public.
Fortress then made 4 subsequent proposals earlier than its provide reached a complete worth of 254 a share on June 5.
($1 = 0.7235 kilos)
Reporting by James Davey. Modifying by Jane Merriman
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