Upmarket fashion group Harvey Nichols is to be taken private in a £137.5m deal led by Hong Kong entrepreneur and majority-owner Dickson Poon, it was announced today.
Poon originally bought the stores group in 1991 for £53m, but floated 49% of the firm five years later.
He said today: “We are delighted to put forward this offer for Harvey Nichols.
“Due to its small market capitalisation and relative stock illiquidity, Harvey Nichols is not realising any material benefit from its listing.
“Consequently, we believe that minority investors will welcome this opportunity for a cash exit at a substantial premium.”
Harvey Nichols’ independent directors recommended shareholders backed the bid.
Non-executive director John Gray said the deal was a “substantial premium” to Harvey Nichols’ share price.
Harvey Nichols is based in Knightsbridge, London, and has stores in Leeds and Edinburgh and a small boutique store in Birmingham. It is also planning to open a store in Manchester next autumn.
In addition the group owns two restaurants, the Oxo Tower and Prism, both of which are in central London.
Poon, who has also been speculated to be interested in buying Harrods, founded retail group Dickson Concepts in 1980, which has about 330 outlets in South East Asia.
Shares in Harvey Nichols surged 33% on today’s news, up 61.5p at 246p.
EGi News 18/09/02
