Entrepreneur Tom Hunter today agreed to delay discussions with takeover target House of Fraser (HoF) until after the crucial Christmas season.
Hunter approached the department store chain last week about a possible cash offer of 85p per share, valuing it at around £196.9m.
HoF immediately rebuffed the approach, however, claiming it not only undervalued the group but was also timed to cause “maximum disruption” during the Christmas period.
Hunter has therefore agreed to not seek further talks until the New Year after a meeting with HoF’s management today.
Bid vehicle TBH, a subsidiary of Hunter’s private equity fund West Coast Capital, said it wanted to avoid any suggestion the approach was a distraction.
Hunter added: “This is a serious approach and I look forward to renewing talks with the management of HoF in the new year.”
His approach is backed by Baugur, the Icelandic retailer that holds an 8% stake in HoF.
TBH – which recently acquired a 4.7% stake in HoF – is also proposing to take on debt, making the potential offer worth a total of around £317m.
Hunter, a 41 year-old Scot, made his fortune when he sold sportswear and leisure chain Sports Division to JJB Sports in 1998 for £290m.
One of the richest men in the UK, the retail entrepreneur is believed to be worth around £400m.
Shares in HoF, which jumped after the takeover approach was first revealed, eased 2p to 83.5p.
EGi News 11/12/02
