Fortnum & Mason has recommended plans to take the company private, following a proposal by majority shareholder Wittington Investments to acquire the remaining 10.1% of shares.
The move would see shareholders receive 600 pence per share.
Fortnum & Mason has been publicly quoted for many years although, due to the large shareholding of Wittington, there has been poor liquidity in the shares and therefore only a limited ability for shareholders to realise their investment. In addition, the UK Listing Authority had expressed concern that less than 25% of the ordinary share capital is in public hands.
Chairman of Wittington Guy Weston said: “Fortnum & Mason has a long history as a listed company. However, the position of minority shareholders has become increasingly anomalous, as they suffer from a lack of liquidity and are unable to realise the full value of their investment. Fortnum & Mason is not realising any material benefit from its listing and we believe a large number of the minority investors would welcome the opportunity of a premium cash exit.”
John Lithiby, the Independent Director of Fortnum & Mason, said today: “I believe that the Proposal presents shareholders with an attractive route for realising their investment at a price which is above the level that the Ordinary Shares are likely to trade in the market in the foreseeable future.”
PricewaterhouseCoopers is acting for Fortnum & Mason.
EGi News 16/10/01
