Loungers agrees to £354.4m Fortress takeover deal
The deal is due to be sanctioned in a court hearing expected to take place on Friday 7 February
Loungers has revealed that 94% of its shareholders have voted in favour of accepting Fortress Investment Group’s £354.4m takeover bid.
News comes after Fortress submitted a revised deal after its first attempt of 310p a share was opposed by Loungers shareholders.
The revised deal of 325p implies an enterprise value of the Cosy Club, Lounges and Brightside operator of roughly £366.6m.
The deal is due to be sanctioned in a court hearing expected to take place on Friday 7 February.
Fortress, which also backs Peach Pubs, Majestic Wines and Vagabond, will run Loungers with the newly-established company CF Exedra Bidco.
Alex Reilley, executive chairman of Loungers, said: “We are very pleased that Fortress has decided to increase its offer, making it even more compelling for Loungers shareholders and reinforcing the Loungers directors’ recommendation that they should vote in favour of the acquisition.”
Domnall Tait, managing director of Fortress, added: “This increased offer for Loungers reflects our continued belief in the business and its management team, and we look forward to supporting them through the next stage of growth. Notwithstanding the recent challenges, Fortress remains a strong believer in the UK.”
