Yates expected to unveil £93m takeover bid

07 June 2004
Yates expected to unveil £93m takeover bid

A £93.4m deal to take bars group Yates private is set to be unveiled on Wednesday, the company announced today.

Last week the company confirmed it was in talks with private equity group GI Partners that could lead to a management buy-out of the company.

Today, in a statement to the London Stock Exchange, the business said the talks had reached "an advanced stage".

It added that it anticipated that a recommended cash offer at a price of 140p per share would be announced on Wednesday, at the same time as the company's full-year results.

With 66.7 million shares in circulation, an offer at that price would value the company at £93.38m.

It is thought likely that the offer will get the nod from Yates' shareholders, who are understood to be keen to find a way of improving the business in a tough financial climate for high-street bars.

Analysts were last week predicting an offer would be in the region of 120p-130p, so 140p would be considerably above expectations.

by Nic Paton

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