Moss Bros shares jump after buyer told to honour deal
Moss Bros shares jumped after the UK's takeover regulator rejected an attempt by the company's buyer to pull out of the £22.6m deal because of the Covid-19 crisis.
General Retailers
3,887.45
14:30 26/04/24
Moss Bros Group
21.60p
16:34 09/06/20
After the market closed on Tuesday the Takeover Panel said Brigadier, the bid vehicle, had not shown that the changed circumstances of the Covid-19 crisis were a good reason to cancel the deal.
The Takeover Panel said it had given Brigadier, led by Crew Clothing owner Menoshi Shina, a short period to decide whether to appeal. Moss Bros shares rose 15% to 19.55p at 11:05 BST – still below the offer price of 22p a share.
Brigadier agreed to buy the 169-year-old formal wear retailer for cash the day after Covid-19 was declared a pandemic. Two weeks later the UK government ordered the closure of non-essential shops. Moss Bros shut all its stores and published a profit warning on 23 March.
On 22 April Brigadier applied to the Takeover Panel to withdraw its offer because of the impact of Covid-19 on the business's prospects. Moss Bros said it would contest Brigadier's decision and one of Moss Bros's biggest shareholders said the matter was a test of the City's resolve.
The Takeover Panel said: "Having considered each of the submissions received and the further representations made, the panel executive has ruled that Brigadier has not established that the circumstances which give rise to its right to invoke the relevant conditions are of material significance to it in the context of its offer."
Moss Bros said it welcomed the decision.