A first attempt to take upmarket department store Harvey Nichols private by its chief executive was today rebuffed by shareholders.
Dickson Poon failed to secure enough support to proceed with his 250p per share offer at today’s extraordinary general meeting.
But despite the setback the wealthy Hong Kong businessman is not abandoning the plan, which values Harvey Nichols at £137.5m.
Poon controls, via investment vehicle Broad Gain, 50.1% of Harvey Nichols and wanted to buy the remaining stock via a scheme of arrangement.
That meant he had to win approval from 75% of the free capital yet only 55.2% voted in favour after the move was blocked by Deutsche Asset Management, which holds 14.9%.
But Poon will now proceed with a recommended final offer at the same price, which means he only has to secure approval from 50% of the free capital.
Harvey Nichols has suffered as the number of tourists coming to London, the home of its flagship Knightsbridge store, has dwindled.
The shop provides three quarters of group sales and the weak trading pushed underlying interim profits down 19% to £5.6m.
Poon bought the retail group in 1991 for £53m before floating a chunk of it five years later.
When he first announced plans to take the group private in September, Poon said Harvey Nichols was no longer getting any material benefit from the listing.
As well as the London store, Harvey Nichols has shops in Edinburgh, Leeds and Birmingham and plans to open in Manchester next year.
It also owns the Oxo Tower and Prism restaurants in central London.
Shares in the group sparked 4p to 241.5p.
EGi News 11/11/02
