The supermarket chain’s board has agreed to back a new takeover deal that values Morrisons’ equity at £6.7 billion, an increase on Fortress’s original £6.3 billion offer.
Morrisons agreed in principle an offer from the private equity consortium led by Fortress Investment Group in July, just weeks after rejecting a £5.5 billion bid from rival buyer Clayton, Dubilier & Rice (CD&R). The rejected firm still has until 9th August to table a fresh offer.
In a stock market statement, Fortress said it noted there had been speculation about a possible counter offer from CD&R, adding that it “remains committed to becoming the new owner of Morrisons and to being a responsible long-term steward of this great British company through the next stage of its evolution.”
Fortress’s new offer has an increased value of 272p per share, compared with the previous offer of 254p per share. The offer will be proposed to shareholders, who will vote on the deal on 16th August.
The statement continued: “Morrisons directors believe that the increased Fortress offer is in the best interests of Morrisons shareholders as a whole, and accordingly unanimously recommend that Morrisons shareholders vote in favour of the resolutions required to implement the increased Fortress offer.”
