Morrisons document reveals bid advisers to bank GBP275mln

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Advisers to the recommended bid for supermarket chain Wm Morrison PLC (LON:MRW) are set to earn GBP275mln in fees and payments if the deal is approved by shareholders.


The payout was revealed in the scheme of arrangement document for the GBP6.3bn offer from a consortium led by private equity group Fortress Investment.


The offer comprises a cash bid of 252p plus a 2p special dividend, with meetings for court and shareholder approval scheduled for 16 August.


At least 75% of shareholders need to approve the offer for it to go through.


Fees payable included GBP169mln for financing the deal and GBP36mln for broking advice and GBP17mln in legal advice.


Morrisons is also paying GBP42mln to Rothschild & Co, Jefferies and Shore Capital.


Fortress is putting up 54% of the funds for the bid, with the Canada Pension Plan Investment Board accounting for a further 31% and Kock Industries the remainder.


Shares in Morrisons were up slightly at 266.5p today or around 5% higher than the Fortress on hopes that another bidder might yet emerge.


Morrisons could receive new offer from spurned private equity suitor


US firm Clayton Dubilier & Rice originally started the takeover process with an approach worth GBP5.5bn (230p per share) last month.


Reports yesterday suggested that CD&R was considering making a second bid and working on a financial package with investment banks JP Morgan, Goldman Sachs (NYSE:GS) (NYSE:GS) and BNP Paribas.


A third US rival, Apollo Global Management (NYSE:APO) (NYSE:APO), said earlier this week that it is in talks about joining the Fortress consortium having dropped plans to make a rival bid of its own.


Another possibility is that Amazon also makes an offer, with the online retail giant reported in the past to be a possible suitor for the supermarket chain.


The document added that Fortress were also in talks with the trustees of Morrisons’ pension schemes.


“Discussions are continuing with the trustees to agree on appropriate mitigation and the trustees have stated their intention to issue their opinion on the Fortress offer in due course,” Morrisons said.

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