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UK: Sainsbury’s agrees £1.3 billion takeover of Argos

By  |  February 2, 2016

Sainsbury’s has sealed its £1.3 billion takeover of Argos owner Home Retail at the fourth attempt after months of tough negotiations.

Bosses at the supermarket had been desperate to get their hands on the High Street giant and it emerged on Tuesday that the board received three previous offers, including one previously announced in November, that had been deemed too low.

But today Home Retail accepted a £1.3 billion or 161.3p a share offer, although this is below the 200p a share some in the City hoped for.

Sainsbury’s chief executive, Mike Coupe, explained that the deal would be for cash and shares in the supermarket and could be entirely funded without the need to ask shareholders for funds.

The offer would see Home Retail investors receive 55p per share in cash, along with 0.321 new Sainsbury’s shares. It means Home Retail shareholders would own 12% of the total group.

Full content: Evening Standard

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