Tesco and Dobbies reveal agreement in UK

The boards of directors of Tesco PLC and Dobbies Garden Centres plc have announced that they have reached agreement on the terms of a recommended cash offer for Dobbies by Tesco Holdings Ltd.

The offer is at a price of 1,500 pence in cash for each Dobbies Share, valuing the entire issued and to be issued share capital at approximately £155.6m (€229m).

As a first step, Tesco Holdings has contracted to acquire and has options to acquire a 22.6% stake in Dobbies and has received irrevocable commitments over a further 2.7%.

Commenting on the Offer, Terry Leahy, Chief Executive of Tesco, said: "This is an exciting opportunity for Tesco. Dobbies is an excellent business with a first-class management team and a great brand that we will retain and develop from its Scottish base.

"The brand name is strong and already well-respected in the local communities in which Dobbies operates. The increasing popularity of gardening, and in particular the trend towards

environmentally friendly products, makes this an attractive sector for Tesco to invest in. The deal is an important part of our strategy to provide customers with greater access to affordable energy saving and environmental products."