Morrisons, Britain’s fourth-largest grocer, agreed to a revised offer of £6.7 billion ($9.3bn) from Fortress Investment Group on Friday, amid a heated battle to take over the supermarket chain.
US investment firm Fortress boosted its offer to £2.72 per share, from an effective £2.54 per share worth £6.3bn, days before the Monday deadline for rival bidder former Tesco boss Sir Terry Leahy and Clayton Dubilier & Rice (CD&R).
The Morrisons board reaffirmed its support for the deal, while Fortress said in a statement that the private equity group “remains committed to becoming the new owner of Morrisons” and to being a “responsible long-term steward” of the company in “the next stage of its evolution”.
Morrisons has attracted interest from private equity groups because of its large real estate portfolio, with the company owning about 90 per cent of its almost 500 stores.
The business, whose turnaround has been led by chief executive Dave Potts, generates large amounts of cash and has low underlying debt and a pension surplus.
However, Morrisons is among a number of British supermarkets attracting the interest of buy-out bidders in recent months, after the UK grocery sector saw their fortunes change dramatically during the pandemic, when a series of lockdowns triggered a surge in spending.
Asda was snapped up in a £6.8 billion ($9.4bn) buy-out by the Issa brothers and London private equity firm TDR Capital last year, who took on £3.5bn of debt to fund the acquisition from Walmart. Interest has also zoned in on Sainsbury’s in response to the company's bullish growth.
But it’s not all plain sailing for the buyers, with concerns about assets being sold off too cheaply, and the industry facing a number of major challenges, from staff shortages to global food price pressures and Covid supply chain disruption.
Russ Mould, investment director at AJ Bell, said the counterbid for Morrisons was an example of private equity suitors having to raise their offers this year as companies and shareholders push back on initial approaches, saying they are too low.
“Private equity firms have a reputation for trying to get a bargain, but their tactics have been fully exposed this year and it now seems rare for the first offer to be the winning one,” Mr Mould said.
Morrison shares jumped to as high as £2.79 in London trading after the announcement, indicating some investors anticipate a higher bid.
The company previously rejected a £2.30 offer worth £5.52bn from CD&R, with the rival private equity group given until Monday to submit a new offer by Britain's Takeover Panel, which regulates corporate takeovers.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
MATCH INFO
Barcelona v Real Madrid, 11pm UAE
Match is on BeIN Sports
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
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- 600-seat auditorium
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The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Volvo ES90 Specs
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
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How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Killing of Qassem Suleimani
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
SPECS
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