Rebel shareholder questions Moss Bros takeover deal

Rebel shareholder questions Moss Bros takeover deal
Brigadier's £22.6m takeover deal will see Moss Bros taken private.
// Cavendish Asset Management questions Brigadier’s takeover bid for Moss Bros
// It says it’s unwise due to the ongoing supply chain risk from coronavirus and potential loss in footfall
// Cavendish Asset Management has a 5% stake in Moss Bros. The biggest shareholder has a 10.7% stake

One of Moss Bros’ main shareholders has gone on the record to question a £22.6 million takeover bid for Moss Bros, citing a supply chain risk and loss in footfall from coronavirus.

Nick Burchett, a fund manager at Cavendish Asset Management, which has a five per cent stake in Moss Bros, also said Brigadier Acquisition Company’s takeover bid for the menswear retailer was unwise given the fact the Chancellor’s Budget this week did little to beef up the high street.

“This is a well-timed if opportunistic bid by Brigadier, and the sharp fall in the market has certainly helped them pick this up cheaply,” Burchett said.

READ MORE: Crew Clothing owner to take Moss Bros private via acquisition deal

“But with little relief for the high street from the Chancellor yesterday and the ongoing supply chain risk from the coronavirus, you have to wonder how wise this acquisition is at this time.”

However, Gatemore Capital Management, the retailer’s second-biggest shareholder with a stake of 10.1 per cent stake, welcomed the takeover bid.

“We are pleased with the proposed transaction to take Moss Bros private by Brigadier Acquisition Company, which represents an attractive premium,” said Liad Meider, a managing partner at Gatemore.

“We are confident the proposed deal will provide management with the appropriate structure to execute the ongoing transformation plan and achieve Moss Bros’s potential to become a leading UK retailer.”

Currently, Moss Bros’ biggest shareholder is Artemis Investment Management, which has a 10.7 per cent stake.

The shareholders’ comments come shortly after Moss Bros’ board revealed it had accepted Brigadier’s takeover deal to pay 22p per share.

The board said the deal represented a 60 per cent premium on Wednesday’s closing price.

The deal will see Moss Bros taken private and the acquisition is expected to be completed in the second quarter of 2020.

Brigadier is majority-owned by Regiment Acquisition Company, which in turn is majority-owned and controlled by Menoshi “Michael” Shina, the owner of fashion retailer Crew Clothing.

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