Thorium scents victory in Yates battle

The Yates Group management team is poised to push through its buyout of the business after raising its offer by 7p a share.

Details of the 147p a share offer for Thorium, the buyout company led by Yates chief executive Mark Jones and backed by US equity firm GI Group, are being posted today.

Shareholders have until August 6 to accept the raised offer, described as 'final' by Thorium. Under City takeover rules, this means the offer, which values the high street bar business at around £154m, cannot be increased again unless a rival bid emerges.

The Yates Consortium, a group of family shareholders representing 20.4 per cent of shares, wrung the increase out of Thorium late last week after announcing that they believed the initial offer undervalued the business.

With the family shareholding added to the acceptances already received, the MBO now has the support of about 54 per cent of shareholders.

Others are now expected to follow, including German investment house Commerzbank, which has built a 12.1 per cent stake in the hope of a higher offer emerging. Banker Goldman Sachs also confirmed on Monday that it has increased its stake in Yates recently, taking it to 4.41 per cent.

However, the City is sounding a cautious note. Panmure analyst Douglas Jack warned: "We view this as a very high price for a company facing major regulatory risk, including licence reform and capacity constraints."

Related articles:​

Thorium increases Yates offer (23 July 2004)

Thorium extends deadline for Yates buyout (23 July 2004)

Thorium stands by Yates offer deadline (21 July 2004)

Yates family puts MBO in doubt (21 July 2004)

Yates MBO in the balance as deadline extended (16 July 2004)

Yates MBO offer extended (2 July 2004)