Tesco launches cash offer for Dobbies

21-05-2008

Tesco launches cash offer for Dobbies
Tesco has launched a cash offer to take over the remainder of garden centre Dobbies after failing to entirely buy it out last year.

The supermarket, which already owns 65.5 per cent of the share capital, said West Coast Capital has accepted a 1200p per share offer for its 29.2 per cent stake.

Shares in Dobbies closed at 1,212.50p last night on the London Stock Exchange.

In June 2007, Tesco attempted to acquire Dobbies but was blocked by entrepreneur Sir Tom Hunter's investment vehicle, West Coast Capital.

However, Tesco did become the majority shareholder after paying £15 a share for 65.5 per cent of the company.

In April this year, West Coast Capital launched legal proceedings against Dobbies to block a shareholder offer at 1200p per share.

Dobbies wanted to raise £12.4 million to fund its expansion plans, but West Coast Capital argued the only beneficiary in an open offer would be its main shareholder, Tesco.

However, a court last week refused to support the application.

Tesco said in a statement to the London Stock Exchange: "Tesco Holdings believes that the offer is good for Dobbies' customers, staff and the wider community.

"It continues to be Tesco Holdings' intention to retain Dobbies' head office in Midlothian and its unique brand, heritage and culture under the Tesco Group umbrella."

Britain's biggest retailer has plans to expand the Scotland-based garden centre chain and offer eco-friendly home products, such as wind turbines and solar power panels.

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