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Caffè Nero Rejects Takeover Offer By Brothers Behind EG Group

By Dave Simpson

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.

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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.

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Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
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