Morrisons has agreed a takeover offer from Fortress Investment Group, which values Britain’s fourth largest supermarket operator at £6.3bn.
The offer from Fortress, which is backed by Canada Pension Plan Investment Board and Koch Real Estate Investments, exceeds the £5.52bn proposal from US private equity firm Clayton, Dubilier & Rice (CD&R), which Morrisons rejected on 19 June, saying it was far too low.
Under the terms of the deal, Morrisons shareholders will receive 254p a share, comprising 252p in cash and a 2p cash dividend.
Morrisons, which trails UK market leader Tesco, Sainsbury’s and Asda in annual sales, said the offer represents a premium of 42% to its closing share price of 178p on 18 June – the last business day before CD&R’s proposal.
Shares in Morrisons closed on Friday at 243p, valuing the business at £5.8bn pounds.
Fortress is a global investment manager with about $53bn in assets under management as of March.
Morrisons said an initial unsolicited proposal was received from Fortress on 4 May at 220p a share. This offer was not made public.
Fortress then made four subsequent proposals before its offer reached a total value of 254p a share on 5 June.