14th Sep 2021 11:52
(Alliance News) - Wm Morrison Supermarkets PLC on Tuesday said that two of its employee pension funds have agreed terms with Clayton, Dubilier & Rice LLC that will allow them to buy out scheme benefits with an insurer after the planned takeover.
CD&R said it will provide further properties to the pension funding partnership structure, "appropriate top up and release mechanisms" and "enhanced governance provisions for the schemes and information sharing arrangements with the trustees."
A statement from the Morrisons Retirement Saver Plan and Safeway Pension Scheme said: "The trustees are pleased to confirm that they have reached an agreement in principle with CD&R in relation to a package of measures to support the schemes' journey to 'buy out' should the CD&R offer complete."
CD&R is still locked in a battle with a consortium led by SoftBank Group Corp-owned Fortress, to take over the Bradford-based supermarket chain. For now, CD&R's 285 pence-per-share offer prevails, but Morrisons is planning to hold an auction between the two. The pension deal may help CD&R win hearts and minds among Morrisons shareholders.
"Based on its reputation for being a trustworthy partner, CD&R has a long history of successfully partnering, developing and caring for the businesses, management, employees and wider stakeholder constituencies in the businesses it which it invests," the private equity firm added.
Shares in Morrisons were up 0.1% to 291.90 pence on Tuesday morning.
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
MRW.L