UK supermarket group Somerfield has announced that it has rejected a conditional proposal relating to a possible offer for the company from retail entrepreneurs John Lovering and Bob Mackenzie.
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Somerfield said the 120p per share offer, which was conditional on a number of matters, substantially undervalued the company.
In April Somerfield rejected a 103p per share offer from Lovering and Mackenzie for the same reason.
Somerfield said the latest offer, received on 3 June, was subject to various conditions including: due diligence; unanimous approval of the Somerfield Board; financing; exclusivity and OFT clearance for J Sainsbury to acquire a large number of pre-selected Somerfield stores.
The group, which also operates the Kwik Save chain of stores, said it believes that the amended proposal presents considerable risks to the business.
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By GlobalDataJohn von Spreckelsen, executive chairman, said: “This latest approach substantially undervalues our business. We have strong brands in Somerfield and Kwik Save, a solid strategy for delivering shareholder value and excellent prospects. The strategy is underpinned by a very strong balance sheet and a valuable property portfolio.”
