Debenhams shareholders approve Baroness bid

Debenhams investors have overwhelmingly voted in favour of a venture capital-backed recommended bid for the department store …

Debenhams investors have overwhelmingly voted in favour of a venture capital-backed recommended bid for the department store group worth 470 pence sterling a share, or £1.72 billion.

Despite a vocal protest from several small shareholders, a total of 99.5 per cent of the proxy votes cast at an extraordinary general meeting were in favour of the takeover terms tabled by Baroness Retail, a consortium made up of CVC Capital Partners, Texas Pacific Group and Merrill Lynch Global Private Equity.

According to official records of the vote, proxies representing 60 per cent of Debenhams equity base were cast at the EGM to rubber-stamp the deal to take the retailer private.

Baroness had to win 75 per cent of that figure to gain ratification for the takeover. The bid was made through a scheme of arrangement that speeds up the normal bid timetable.

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Acceptance of the offer means Debenhams shares will de-list on December 5th, freeing the company to concentrate on Christmas trading. Shareholders will receive their cheques by December 18th.

The Debenhams bid battle started in May when the retailer's independent directors freed chief executive Ms Belinda Earl and finance director Mr Matthew Roberts to work with Laragrove, the consortium led by private equity house Permira.

Permira bid 425 pence a share in July but was trumped by Baroness in September with a 455 pence a share offer. Baroness lifted its offer to 470 pence a share on October 23rd, prompting Laragrove to pull out of the contest.

AFP