Private equity firm Fortress has hinted that it would launch a wide-ranging review of the Morrisons business if it succeeds in its proposed £6.3bn takeover of the grocer.
Fortress, which already owns Majestic Wine in the UK, said it would conduct “a fuller evaluation of the Morrisons group and its operations and organisational structure” within the first six months of ownership, should it secure a deal.
The review would include Morrisons’ property portfolio – the supermarket giant currently owns the freehold on almost nine out of every 10 shops it operates.
In a circular for Morrisons investors, prepared ahead of a crunch vote on Fortress’ offer on August 16, the US firm reiterated that it does not plan to sell a “material” number of stores.
But the plans for a “fuller evaluation” are likely to raise some fears among campaigners and some investors who have concerns that any buyer will seek to extract value from the property portfolio through sale and leaseback agreements.
Business secretary Kwasi Kwarteng has publicly supported the takeover following talks with the Morrisons leadership team including chief executive David Potts and chair Andy Higginson.
Speaking to LBC, Kwarteng described the proposed £6.3bn deal as a “really good prospect”.
He added: “Morrisons chair Andy Higginson talked to me about the deal and I said that this is a vote of confidence to the UK. It is not a bad thing if foreigners want to come and buy really good assets in your country. It means you are attracting capital, you are attracting investments, and that creates jobs.”
The circular sent to shareholders also included details of more than £300m in fees that would be raked in by advisers and bankers should the acquisition go ahead.
Bankers, lawyers, PR advisers and accountants acting for Fortress will be paid up to £263m collectively, while Morrisons will spend up to £49m to the likes of Rothschild, Jefferies and Shore Capital.
Another Morrisons suitor, CD&R Capital, which counts former Tesco boss Sir Terry Leahy as an adviser, has until August 9 to make a rival offer unless a third party enters the race with a bid before that date.
Another private equity firm, Apollo, said earlier this week it would not make an individual bid for Morrisons but had instead entered talks with Fortress about joining forces on a bid.
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