Apollo and Bastion negotiate a Morrison deal
Apollo Global Management is negotiating with Fortress Investment Group on a recommended offer for Wm Morrison, the fourth largest supermarket chain in the UK.
This month, three private investment groups led by Fortress, a subsidiary of SoftBank, reached a £9.5 billion deal to acquire the supermarket chain. Apollo has said that it is also considering Morrison, which has triggered the possibility of a bidding war for supermarkets.
But Apollo said on Tuesday that it no longer considers its offer and is negotiating to join the investment group led by Fortress.
Before including 3.2 billion pounds of net debt, the bid led by Fortress valued Morrison’s equity at 6.3 billion pounds.
The statement said: “Apollo is aware of Fortress’ intentions regarding Morrison’s business and all its stakeholders.” “If these discussions lead to any transaction, Apollo will fully support Fortress’s stated intentions regarding Morrison.”
According to the terms of the transaction announced on July 4, Fortress, the Canadian pension fund CPPIB and a division of Koch Industries will pay 252 pence per share and support a special dividend of 2 pence to purchase the grocery store.
Two weeks ago, the Bradford-based group said it rejected the private equity group Clayton, Dubilier & Rice’s initiative to offer 230 pence per share.