20th Jul 2021 09:36
(Alliance News) - Asset manager Apollo Global Management on Tuesday said it has decided against making an offer for Wm Morrison Supermarkets PLC.
The potential for a bidding war over the supermarket chain subsided as Apollo joined discussions with the consortium of investors whose takeover bid was recently accepted.
Earlier this month, Bradford, West Yorkshire-based Morrisons agreed to a GBP6.3 billion buyout by a group of investors - including Softbank Group Corp-owned Fortress, Canada Pension Plan Investment Board and Koch Real Estate Investments.
Under the GBP6.3 billion deal, the consortium agreed to pay 252 pence per share plus a 2p special dividend.
Shares in Morrison sat above the 254p total offer price on Tuesday, as the price slipped just 0.2% to 261.60p each in London.
Apollo initially said it was considering making its own offer, after the chain accepted the Fortress bid.
Despite rejecting the possibility of an independent offer, Apollo said current talks with the Fortress consortium "may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer".
But Apollo added: "There can be no certainty that any transaction will be entered into by funds managed or advised by Apollo in relation to the Fortress offer, nor as to the terms of any such transaction."
In June, Morrisons rejected a GBP5.5 billion offer made from New York-based private equity firm Clayton Dubilier & Rice, which sent the supermarket chain's share price soaring - but which Morrisons ultimately said it was too low.
By Scarlett Butler; [email protected]
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