MWB Group has called off its proposed £52m takeover of subsidiary Business Exchange after five months of talks.
The group this week said that “after careful consideration, notwithstanding that MWB remains a committed shareholder of Business Exchange, MWB has decided not to proceed with an offer” for the serviced office business in which it owns a 72% stake.
The move came just one day after Business Exchange had granted Richard Balfour-Lynn’s group, which owns the Hotel du Vin and Malmaison hotel chains, a third extension to announce a firm decision about the proposed buy-out.
It also came after the group’s annual general meeting, during which board members and shareholders rowed over the proposal and the group’s debt bill.
Pyrrho, which owns 24% of MWB, had previously opposed the takeover – and twice written open letters to the group detailing its concerns.
At the AGM it raised concerns over the cost of a recent £285.5m debt refinancing against its Malmaison subsidiary.
bridget.o’connell@estatesgazette.com
