Book Store Acquisitions has been formed specifically for the takeover by Ottakar's founder James Heneage and other directors, with financial backing from Phoenix Equity Partners. Hawkpoint Partners is acting for Book Store Acquisitions.
The bidding team has also poached David Roche, product director of arch rival Waterstone's, to be chief executive. Heneage will become executive chairman.
HMV, which owns books market leader Waterstone's, revealed yesterday that it was interested in buying Ottakar's.
However, Ottakar's senior independent non-executive director John Thornton said: 'No proposal has been received from HMV at this time and, in the absence of any other offers or firm proposals, the [Book Store Acquisitions] offer provides shareholders with an immediate and certain opportunity to realise their investment in cash at a material premium to recent values.'
He said: 'This is a fair offer in the context of challenging current trading conditions and medium-term prospects, combined with the risks associated with implementing a significant programme of infrastructure development over the next two years.'
Hugh Lenon, managing partner of Phoenix, said: 'We consider Ottakar's to be one of the leading brands in the UK book retail sector and this deal extends Phoenix's commitment to buying brands with strong core values and growth potential.'
Book Store Acquisitions has received irrevocable undertakings and a letter of intent to accept the offer.
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