Retailer Coles Myer has rejected a revised leveraged buyout proposal from a consortium of buyers led by Kohlberg Kravis Roberts & Co. (KKR).

The proposal, which valued the company at A$15.25 (US$11.54) per share, was received by Coles last night but was considered to “substantially” undervalue by the chain.

Coles Myer chairman Rick Allert said: “The conditionality of the proposal gives no certainty that the price proposed would be delivered to shareholders.

“The board believes that shareholder interests will be better served by the company pursuing its growth strategy. We remain confident that this will create significantly increased value for shareholders.”

The company added that it was on track for implementing its strategic initiatives – designed to reduced costs and grow earnings.

The consortium was made up of KKR, The Carlyle Group, CVC Asia Pacific, Texas Pacific Group and Blackstone Group.

Last month (6 September), Coles announced it had rejected a A$14.50 per share offer, from a consortium of buyers from Bain Capital, Blackstone, Carlyle, CVC, KKR, Macquarie Bank, Merrill Lynch, Texas Pacific/Newbridge and PEP.