✒ The Fortress-led bid values the equity of Morrisons at £6.3bn before the inclusion of £3.2bn of net debt. On a per share basis, this represents a 42% premium to their price before the company disclosed the approach from CD&R.
The deal would be the largest UK private equity buyout since KKR bought the pharmacy chain Boots in 2007.
Morrisons owns 85% of its 497 stores, but Fortress played down any immediate moves over property assets (the playbook used in the Asda deal), saying that it would engage with Morrisons management on its long-term plans for managing the estate, but does not anticipate engaging in any “material” store sale and lease-back transactions.
Another question is whether this whether the acceptance of this bid would start a competitive auction and make CD&R attempt to disrupt the process with a counterbid.