Sainsbury’s issued a clarification to investors regarding its offer for Home Retail Group PLC, highlighting that certain pre-conditions for its offer are waivable.
Sainsbury’s surprised the world of retail when it emerged in January that it had made an offer for Home Retail Group in November. Following weeks of speculation it made a new offer of £1.3bn for the group, which owns Argos; an offer that was summarily dwarfed by a surprise bid by Steinhoff International Holdings.
The supermarket chain, Britain’s largest, clarified that the conditions requiring due diligence of Home Retail’s books as well as a recommendation from the group’s board of directors are waivable, effectively meaning that Sainsbury's is able to make a hostile bid for the group.
At this point in time nothing is certain. Sainsbury's has been given until 18 March to decide whether or not it will make a firm bid for Home Retail Group.
“Sainsbury’s wishes to clarify that these pre-conditions are waivable,” a company spokesperson said.
“There can be no certainty that Sainsbury’s will proceed with an offer for Home Retail Group even if the pre-conditions are satisfied or waived.”