Darty Recommends Groupe FNAC's Final Offer
May 31 2016 - 6:58AM
Dow Jones News
By Ian Walker
LONDON--Electrical retailer Darty PLC (DRTY.LN) on Tuesday
recommended shareholders accept Groupe FNAC's (FNAC.FR) final
offer, citing its superior value to that of South Africa's
Steinhoff International Holdings NV's (SNH.JO) French unit
Conforama.
Darty said it considers the terms of FNAC's offer to be "fair
and reasonable" and has subsequently withdrawn its recommendation
of the Conforama offer.
Earlier this year, Conforama and French retailer FNAC traded
sweetened counterbids for Darty with FNAC raising its latest offer
to 170 pence a share. The bid includes a partial share alternative,
allowing Darty shareholders to take one FNAC share for every 25
Darty shares held, and values the company at 900.24 million pounds
($1.32 billion).
Conforama's latest offer was 160 pence a share.
"In evaluating the FNAC offer, the board of Darty has considered
various aspects, including execution risk, and considers the final
offer to represent a superior offer for Darty shareholders, as
compared to other offers," Darty said Tuesday.
Last Tuesday Conforama extended the offer period for Darty after
getting acceptances for just 0.56% of Darty's shares. At the end of
the fourth closing period of May 23 it owned, or had received
acceptances in respect of 111.03 million Darty shares, or 20.96% of
its issued share capital. The offer period was extended to 1200 GMT
on May 31. However, it said if by that date Darty has recommended
FNAC's offer, its own bid would lapse. No statement has yet been
made by Conforama.
Under French law any deal needs the support of two thirds of
votes, about 66%, for it to go through.
On May 4, FNAC said it had the support from Darty shareholders
owning 52.16% of its shares to vote in favor of its bid for at a
general meeting to be held on June 17.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
May 31, 2016 06:43 ET (10:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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