Bon Marché board rebuffs full takeover offer by billionaire
The Board of Wakefield-headquartered Bon Marché has rebuffed the full offer made by billionaire Phillip Day earlier this monrth as it “materially undervalues Bon Marché and its future prospects.”
This morning updating the market, Bon Marché responded to the mandatory cash offer of 11.445 pence per Bon Marché share – amounting to £2.73m – made on April 2. Day’s firm. Spectre, had already purchased 52% of the struggling listed retailer for £3m – which, under takeover rules, meant that an offer for the full shares had to be made by Spectre.
This would take the total takeover acquisition cost to £5.73m.
This morning Bon Marché said: “The Board would also like to take this opportunity to inform shareholders that, in light of trading in Q4 of the financial year ended 31 March 2019 and prior to the announcement of the Mandatory Cash Offer, it had been planning a number of cost reduction actions across the Group and anticipates starting the implementation of these shortly. Further detail on these actions will be announced in due course.
“In view of Spectre’s position as the majority shareholder in Bonmarché, the Board has sought to engage with Philip Day to discuss the future plans for the business for the benefits of all stakeholders. The Board continues to seek positive engagement with Philip Day and looks forward to discussions in due course.”
The Board will be writing to shareholders with its formal response to the Mandatory Cash Offer once the offer document has been posted by Spectre.
Bon Marche added: “In the meantime, Bonmarche shareholders are strongly advised to take no action in relation to their Bonmarché shares. Further announcements will be made as and when appropriate.”
Phillip Day is a businessman and owner of The Edinburgh Woollen Mill Group.
On April 2, Spectre set out detailed review plans as to what they intended to focus upon to turnaround the business. Spectre said: “As a result of its review, and based purely on publicly available information, Spectre expects a material reduction in headcount across Bon Marché.”
It added that it would conduct a thorough store-by-store review, stating: “Those stores identified as underperforming may be closed unless reduced rents, staff reductions or other cost saving measures can be successfully implemented.”
