Private equity group Apollo is studying a potential acquisition of British supermarket chain Wm Morrison, which has agreed £9.5 billion acquisition Led by the rival investment group Fortress.
Apollo, where Lost In a bidding war against Asda’s grocery store chain last year, it said in a statement on Monday that it was “in the preliminary stages of evaluating a possible offer for the London-listed company.”
This American private equity firm is the latest global investment group to circle Morrison. Morrison rejected Clayton, Dubillier and Rice offers last month, and accepted a fort-led bid over the weekend. .
Private equity interest in Morrison emerged in the context of increased investor interest in Morrison Buyout group For British companies, their valuations have been suppressed by Brexit and the coronavirus crisis.
In Monday morning, the share price of the UK’s fourth-largest supermarket chain rose 11% to 266.5 pence-easily higher than Fortress’s offer of 252 pence per share, indicating that traders believe there will be another bid.
Apollo said it has not yet contacted the Morrison board chaired by Andrew Higginson. “It is impossible to determine whether any offers will be made or the terms of any such offers,” the New York-based group added.
Bradford-based Morrison said over the weekend that it had reached a £9.5 billion deal with Fortress, a subsidiary of SoftBank, and a division of the Canadian pension fund CPPIB and Koch Industries.
The accepted transaction includes a special dividend of 2p per share and a valuation of Morrisons’ equity at 6.3 billion pounds before accounting for 3.2 billion pounds of net debt.
The bidders also made several public promises about Morrison’s future, the roots of which can be traced back to a market stall opened in 1899. They stated that they plan to keep the company headquarters in West Yorkshire, guarantee pensions and maintain an hourly wage of £10. Minimum wage agreement for employees.
The unsolicited offer of Clayton, Dubilier & Rice was 230 pence per share.