Against all expectations, Darty has chosen not to join Fnac despite some discussions. The board decided to ally with Conforama, a furniture and appliance brand. Darty accepts the offer Conforama Fnac will not benefit from the strength of Darty since the board shared a
Against all expectations, Darty has chosen not to join Fnac despite some discussions. The board decided to ally with Conforama, a furniture and appliance brand.
Darty accepts the offer Conforama
Fnac will not benefit from the strength of Darty since the board shared a very different choice than expected. At this stage, the company will not have the opportunity to see the offer accepted, but it has nonetheless still a chance if it decides to bid. In view of recent negotiations is that Conforama has attracted Darty.
It is important to note that Darty is integrated with the London Stock Exchange. It can thus afford to refuse an offer including the Fnac which was less attractive. The Board of Directors recommends acceptance of the takeover and in the case, administrators have specified that the situation could still change if Fnac decided to make “a better offer as financially that under his certainty of execution. “
Fnac is evaluating the various options available to it
the Board of Darty was willing to English recommend to its shareholders to accept the cash tender offer in early March by Conforama, supported by its parent Steinhoff, judging its financial terms “reasonable and fair” according to a joint statement.
the furnishing teaches early March proposed 125 pence per share Darty, valuing the home appliance distributor to over 864 million, where Fnac proposed late November around 558 million pounds, payable mainly securities, an offer that Darty had initially accepted.
“as a result of this announcement, the directors of Darty no longer intends to recommend the offer of Fnac, at least one offer as more favorable financial terms that under his execution certainty, “the statement said.
When contacted by AFP, a Fnac spokesman simply said that” this ad is confirmation of what was already public for several days and Fnac is evaluating the various options available to it. “
last weekend, the Sunday newspaper had claimed that the distributor cultural products and technical “thought (asserts the) an alliance with a partner that would provide funding” to provide an offer increasingly important liquid than Conforama. Remarks that “cultural agitator” was described as “false rumors and information” on which he did not wish to speak.
The acquisition could be done via the launch of a public offer purchase (OPA) on Darty actions.
Create a french leader in the distribution of goods and home accessories
“the next step is to file the dossier notifying operation with competition authorities, “told AFP the head of Conforama, Alexander Nodal, who believes that” the operation could have chances to be completed by the third quarter. “
one of the main shareholders of Darty, the UK funds Schroders (14.14% stake) has already indicated its intention to subscribe to the offer, he said.
the Board Directors of Conforama argues that combining a specialist home appliance and furniture chain, its bid “will create a french leader in the distribution of goods and home accessories, operating under brands well established and complementary. “
Mr. Nodal also argues that “the transaction will create significant value by enabling the realization of economies of scale”, especially in procurement and logistics.
Finally, the operation “presents an opportunity for Darty management teams as well as for all employees to become part of a European leader (…) in which they will be able to develop and grow professionally, “says the leader, protester and its desire to keep the staff of Darty after the merger.
the Authority of the French competition quickly review the file
the unions had expressed serious concerns to the announcement proposed acquisition by Fnac, fearing job cuts. This agreement between Conforama Darty and comes as the proposed combination of the English distributor with Fnac was already well underway.
On Thursday night, the Authority of the Belgian competition had even cleared the approximation of two groups. The Authority of the French competition examines it, the record since 17 February.
Darty (12,600 employees, 400 stores) has returned to profit last year (EUR 13.8 million on sales of 3.51 billion). Conforama (13,400 employees, 280 stores) achieved over the last fiscal year a turnover of 3.22 billion.
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