Musgrave face tough fight for Londis

MUSGRAVE are facing a massive fight with the Big Food Group in the battle to take over Londis in Britain.

The Big Food Group (BFG), which owns the Iceland retail chain of 754 stores, has told Londis’s 1,933 store-owning shareholders to oppose the deal with the family-owned Musgrave at an EGM on

December 30 next. Cork-based Musgrave own the SuperValu and Centra franchises.

BFG says its offer will double the take retailers get from the sale. Big Food will make its £40.3m bid if shareholders reject the terms of a 40m deal by Musgrave at the EGM.

Under its proposals, Big Food will divide £39.7m among Londis retail shareholders, more than £19.8m they would receive if the Musgrave deal succeeds.

Londis management who were to get £20.2 million in the Musgrave deal will get just £600,000 under the BFG proposal.

However, it is understood the Londis board have legally copper-fastened the ownership of 51% of the company in a takeover scenario and the advantage still appears to be with Musgrave at this juncture.

A spokesman for Musgrave said their offer still stands and said they remain confident their bid will succeed.

Londis have agreed to pay Musgrave £400,000 if they agree a deal with a rival bidder.