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LONDON (Alliance News) - Anglo-South African financial services group Old Mutual PLC on Wednesday gave its backing to the takeover of Home Retail Group PLC by J Sainsbury PLC.
Old Mutual Global Investors, the investment management arm of Old Mutual, owns a 3.6% stake in Home Retail.
On Tuesday, Sainsbury's and Home Retail said they had agreed key financial terms for Sainsbury's to buy the Argos and Homebase owner in 161.3 pence per share deal. The deal includes a cash and share offer for Home Retail, plus a capital return to Home Retail shareholders from the sale of Homebase to Australia's Wesfarmers Ltd.
Old Mutual said it had previously been quoted in news reports that it was seeking around 200.00 pence per share for Home Retail, but said it now considered the new offer fair following the Homebase disposal and further details on the opportunities for Home Retail as part of Sainsbury's.
Sainsbury's shares were down 1.3% to 247.26 pence on Wednesday, while Home Retail shares were down 0.2% to 152.70p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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