Wm Morrison Supermarkets Plc rejected as undervalued an unsolicited proposal from U.S. buyout firm Clayton Dubilier & Rice LLC that valued the U.K. grocery chain at about 5.5 billion pounds ($7.6 billion).
Morrison received a proposed cash offer at 230 pence a share on June 14 and rejected it three days later after discussions with its adviser Rothschild & Co., the company said in an emailed statement Saturday. The proposal is about 29% more than Friday’s close in London, a hefty premium for investors nursing a 6.3% decline over the past 12 months.
Private equity investors are seeking to capitalize on the improving fortunes of leading supermarket chains after lockdowns triggered a surge in in-store and online grocery spending. Morrison and competing U.K. supermarkets including Tesco Plc and J Sainsbury Plc appear to have weathered the reopening of restaurants well, suggesting that consumer habits may have permanently shifted in their favor.
Source: Bloomberg
By Jan-Henrik Foerster and Deirdre Hipwell
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.