The UK’s Takeover Panel has given the Qatar-backed investment fund interested in buying Sainsbury’s two weeks to table a formal offer.
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The November 8 deadline comes as the fund, Delta Two, told the UK retailer that it is looking to get extra funding from the Qatar government to boost its proposed offer.
Delta Two, which outlined its first proposal – worth GBP10.6bn (US$21.7bn) – in July, has since increased the equity portion of the offer after talks with Sainsbury’s.
That move had allowed the fund to undertake due diligence on the retailer but a further announcement this morning (26 October) revealed that Delta Two will again look to up the equity element in its proposal.
“Delta Two has informed Sainsbury’s that it is seeking increased funding of approximately GBP500m of additional equity in respect of the proposed acquisition of Sainsbury’s at an offer price of 600 pence per share in cash,” the two sides said. “There can be no certainty that such funding will be forthcoming and, therefore, no certainty that an offer will be made.”
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By GlobalDataDelta Two has until 8 November to make a firm offer or it must walk away from its ambition to buy Sainsbury’s the UK’s third-largest retailer.
