Caffè Nero Rejects Takeover Offer By Brothers Behind EG Group
Caffè Nero has rejected a takeover offer by the billionaire brothers behind petrol forecourt company EG Group, Zuber and Mohsin Issa.
As reported by breakingnews.ie, the brothers' offer came ahead of a vote by Caffè Nero creditors on a Company Voluntary Arrangement (CVA) plan, the aim of which is to secure better terms from landlords.
The brothers made their offer to Caffè Nero founder and controlling shareholder Gerry Ford.
The brothers said that their offer would have paid landlord rent arrears, which are owed as a result of the COVID-19 pandemic, in full.
Caffè Nero Statements
However, Caffè Nero said that the offer was a "clear intention is to disrupt the CVA process", and that the offer could be a precursor to the brothers "opportunistically acquiring the company at a later date".
Caffè Nero also stated, "Importantly, the group's external lenders have indicated their support for the CVA process.
"The lenders are aware of the approach [made by the Issa brothers] and have not requested a change in strategy, and shareholders have undertaken to reject the offer."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.