BFG in meeting with KPMG over Londis plans

Big Food group (BFG) was summoned to a meeting with KPMG Corporate Finance yesterday to discuss its plans for the Londis chain of independent grocers.

KPMG are advising Londis which is currently up for sale.

A bid from Cork-based Musgrave to buy the Londis group of stores for €57m had previously been accepted last month.

This bid was then rejected by the Londis shareholders when it emerged that under the terms of the deal four directors of the chain would have shared about €30m, with the payout to the 1,933 shopkeepers just €14,741 each.

BFG then stepped in with an offer of €57.47m which doubled the shareholders cut.

At a Londis EGM on the 30 December no decision was made.

The meeting with KPMG yesterday came just as BFG announced 1.9% like-for-like sales growth at its recovering Iceland supermarket chain in the five weeks to December 26.