The board of Home Retail Group has confirmed that in November 2015 it received an approach from supermarket chain Sainsbury’s regarding a possible cash and share offer for the company.
In a statement issued yesterday (January 6), the board said that having reviewed the approach with its advisers, it rejected the approach ‘which undervalued Home Retail Group and its long-term prospects’.
In accordance with Rule 2.6(a) of the City Code on Takeovers and Mergers (the “Code”), Sainsbury’s will have until 5pm on 2 February 2 to announce either a firm intention to make an offer for Home Retail Group in accordance with Rule 2.7 of the Code, or that it does not intend to make an offer.
The statement continued: ‘There can be no certainty that a firm offer will be made, nor as to the terms on which any firm offer might be made. The board will issue a further statement if and when appropriate. In the meantime, Home Retail Group shareholders are advised to take no action.’
Home Retail Group is scheduled to release its latest trading statement on January 14.