Singapore’s GIC teamed up with Fortress to bid for £9.5 billion Morrisons

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Wm Morrison supermarket PLC update

Singapore’s sovereign wealth fund GIC has joined a private equity-led consortium to bid for the British supermarket chain Wm Morrison.

The group is led by the US group Fortress, a subsidiary of SoftBank, and said on Wednesday that GIC will provide it with 100 million pounds of funding. Provided a £9.5 billion offer to the grocery store. GIC already owns 0.2% of the grocery chain.

A division of the Canadian pension fund CPPIB and Koch Industries is part of the Fortress consortium. Private equity group Apollo said this month that after deciding to join the consortium, it is considering joining the consortium. Do not make your own offer. The addition of GIC will not change the value or terms of the offer.

Morrison’s board of directors has approved the consortium’s offer of 252 pence per share, but has encountered trouble with investors. Silchester, the largest investor in the 15%-owned supermarket chain, said on Tuesday that it “is not inclined to support the existing Fortress offer.”

It quoted Concerns about the short-term timetable, It stated that there was not enough time to explore other offers, and that these proposals did not provide anything Morrison could not achieve as a public company.

Some other investors, especially legal and general investment management companies, also Express concern Regarding all aspects of the fortress proposal. The bid will require the approval of three-quarters of the votes at the special meeting and a simple majority of all shareholders to proceed.

The two companies said in a document released on Wednesday that, according to Fortress’ plan, it will provide 51% of the equity required for the Morrison transaction, CPPIB will provide 31%, Koch will provide 15%, and GIC will provide approximately 3%. However, it said Fortress will own 73% of the company that acquired the grocery store.

Competitor acquisition company Clayton, Dubilier & Rice made an offer of 230 pence per share to Morrison. The grocer said last month that it had declined. It will not be possible to provide a higher offer or leave until August 9.

GIC’s other investments in the UK include shares in Heathrow Airport and London student apartments, the latter being a joint venture with Unite Students. The sovereign wealth fund declined to comment.

Additional report by Stefania Palma

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