Sir Tom Hunter is reviewing his holding in Dobbies Garden Centres after the retailer said it would raise £150 million through the issue of new shares, according to The Daily Telegraph.
The Scottish tycoon, who owns a minority stake in the Tesco-controlled business, last year fought a well publicised battle with Tesco – which owns 65 per cent of Dobbies – to take control of the garden centre business.
Hunter refused to sell his 29 per cent stake and is the retailer’s second largest shareholder.
The majority of the capital for the funding of acquisitions and the reduction of debt will be raised by Tesco, but Hunter will have to produce about£44 million to subscribe to the rights issue if he wants to keep his stake in the company at 29 per cent.
A spokesman for Hunter said he was considering his position, The Daily Telegraph reported.
One analyst said: “This is Tesco putting the squeeze on Hunter. Together with the lack of a dividend, this sends out a strong message that they don’t want him in there.”
Yesterday, Dobbies revealed pre-tax profits slumped nearly 12 per cent to£3.8 million in the year to the end of October because of poor summer weather.
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