Instore bidder secures majority stake
THE cash & carry magnate bidding to takeover Poundstretcher owner Instore today announced that he has secured a controlling stake in the company.
Seaham Investments, a subsidiary of food wholesaler Crown Crest, which is owned by entrepreneur Aziz Tayub, said that it now owned shares or had received the backing of shareholders with 51.2% of Huddersfield-based Instore.
Mr Tayub securing a controlling stake was expected, given that he owned just 30.63% of Instore shares and had received the backing of 20.4% of the stake of the other major shareholder, South African group Tradegro.
He now must secure the support of small shareholders who have until July 29 to decide whether to accept Seaham’s £11.4m offer, which Instore’s management says “significantly undervalues” the company.
Seaham’s offer is for 5p a share in cash which is a 4.8% discount to Instore’s closing price on June 13, the day before it received the takeover approach.
Tradegro has not backed Seaham’s offer with the remaining 15.4% of its shares.
Last week Instore non-executive chairman Dr Christo Wiese plus directors Cornus Moore and John Gnodde all resigned from the board.
All three are connected toTradegro and their resignations came a week after the company’s independent directors, John Jackson and John Richards, rejected Seaham’s offer.
