- Saturday, April 20, 2024
By: Pramod Thomas
COFFEE SHOP chain Caffè Nero has rejected a takeover bid from EG Group’s Issa brothers, describing it as ‘opportunistic’.
The billionaire brothers have made the offer on Sunday(29) ahead of a key meeting between Caffè Nero and its creditors.
Following the dismissal of the offer, the coffee chain will be forced to seek a company voluntary arrangement (CVA) – a type of rescue deal that could see some of its stores shut and rents cut on others.
In a statement Caffè Nero criticised the takeover bid as a ‘clear intention’ to disrupt the CVA process.
The firm doubted the move a precursor to the Issa brothers ‘opportunistically acquiring the company at a later date’.
“Importantly, the group’s external lenders have indicated their support for the CVA process. The lenders are aware of the approach referred to above and have not requested a change in strategy and shareholders have undertaken to reject the offer,” Caffè Nero said in a statement.
It owns 650 own-brand stores and 150 Harris & Hoole coffee shops and employs 5,000 people. The firm has been hit hard by the reduced footfall in city centres during the pandemic.
In September, a consortium of Zuber and Mohsin Issa and private equity firm TDR Capital won the battle to buy Asda from its US owner Walmart.
Their EG Group runs 6,000 petrol forecourts in Europe, the US and Australia, and already has brand partnerships with the likes of Starbucks and KFC.
