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05 Jul 2021 | 07:03

Morrisons confirms £6.3bn recommended offer from Fortress

(Sharecast News) - UK supermarket group Morrisons on Monday confirmed it had recommended a £6.3bn offer from US investment fund Fortress, the owner of Majestic Wine. The news broke over the weekend amid reports rival private equity outfit Apollo had appointed the investment bank Morgan Stanley to advise on a potential offer.

Morrisons has already rejected a bid from yet another US buyout firm Clayton, Dubilier & Rice.

"It's clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons. This, together with the very clear intentions they have set out today, has given the Morrisons directors confidence that Fortress will support and accelerate our plans to develop and strengthen Morrisons further," said Morrisons chairman Andrew Higginson.

"The Morrisons directors believe that the offer represents a fair and recommendable price for shareholders which recognises Morrisons' future prospects.

Morrisons, which operates 500 stores and employs about 118,000 staff in the UK, on Saturday said it would sell to a Fortress-led consortium which includes the controversial Koch family.

Fortress and its partners will take on debt worth £3.2bn. The consortium and Morrisons settled on a total value of 252p a share and a 2p cash dividend after months of talks.
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