Wholesaler Musgrave Offers Londis To Stakeholders

Irish wholesaler Musgrave has posted details of its GBP60m offer for Londis to shareholders in the UK symbol retail group.

Details of the offer have been posted to the 1,900-plus independent retailers who each own a stake in the buying group. Each will receive a payment of around GBP31,000, with Musgrave needing the support of 75 per cent of shareholders at an EGM set for June 22.

One rival bid, backed by Icelandic bank Kaupthing and led by two former directors of c-store chain T&S Stores, now owned by Tesco, has already been tabled. That bid would see Londis shareholders get a lower cash payment but retain ownership of 60 per cent of the business, an option some have campaigned for.

Under Musgrave, which already owns the Budgens chain in the UK, Londis retailers would retain their independence but benefit from the greater buying power of the combined business.