West Coast Capital may buy out Wyevale Garden Products |
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Tue, 28 Feb 2006 17:05
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LONDON: Wyevale Garden Centres Plc., Britain's plant retailer, is opening its books to West Coast Capital, the investment company formed by Scottish retail entrepreneur Tom Hunter, which is trying to acquire it. One of the shareholders of the company, Laxey Partners, has already sold 14.9 per cent of its 28.6 per cent stake to West Coast Capital for 42 million pounds -- 555 pence a share -- and has reached an agreement to sell the balance stake at the same price.
Laxey Partners is believed to have made around 23 million pounds on its investment made in 2004.
The news sent Wyevale's shares up 37 pence, or 7.2 pct, to 552, valuing the company at 307 million pounds.
Another investor in the company, U.S.-based Millennium Partners, which holds 11.3 per cent stake, too is known to be wanting to exit the company.
Laxey Partners has been at loggerheads with Wyevale's board and management, which had failed in finding a buyer for the company last year. The company's chairman, David Williams, was removed at the EGM in December. It had made a pre-tax profit of 15.1 million pounds in 2004.
Wyevale, Britain's largest garden centre operator, said it is cooperating with West Coast Capital in the due diligence process.
West Coast Capital, founded in 2001, owns retail businesses, including the shoes chain Office and the d2 menswear chain.
Analysts said Sir Tom may spend a total of 311 million pounds for Wyevale. He has the support of HBOS in the deal.
Private equity firm Cinven had approached Wyevale last year with an offer of 580 pence a share, comparatively a higher price than the one offered by Sir Tom.
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