Thorium stands by Yates offer deadline

Buyout group Thorium has reconfirmed its offer deadline for Yates Group after family members suggested the business has been undervalued.

Thorium, led by the Yates Group management team including chief executive Mark Jones (pictured)​, said the newly-formed Yates Consortium has given no explanation of how it can get better value than the 140p-a-share on offer, with no rival bid on the table.

The consortium is made up of shareholders, mainly Yates family members, holding 20.4 per cent of shares in the managed pub business. It has appointed Investec Investment Banking to advise on its options.

Thorium pointed out that the only other interest shown in Yates, from Laurel Pub Company, has been withdrawn without a rival bid emerging.

A statement said: "For the avoidance of doubt, the consortium members are free to accept the 140p per share offer by Thorium at any time, with Investec's consent."

It added: "Shareholders are urged to accept the offer by Thursday 22 July, at which time the offer is due to expire. Depending on the level of acceptances Thorium will consider the options available to it at that time."

Thorium also stressed that Yates' independent directors had recommended the offer to shareholders as 'fair and reasonable' after taking advice from merchant bank Close Brothers.

An Investec spokesman told thePublican.com​ that, in addition to believing that the offer undervalues the long-term potential of the business, the consortium members had 'concerns' about the process by which the offer had been recommended. He would not go into detail on the nature of these concerns.

Related articles:​

Yates family puts MBO in doubt (21 July 2004)

Yates MBO in the balance as deadline extended (16 July 2004)

Yates MBO offer extended (2 July 2004)

Laurel drops out of Yates sale (29 June 2004)

Laurel is second bidder stalking Yates (24 June 2004)

Yates directors approve share plan to go private (11 June 2004)

GI Partners to table £93.4m Yates bid (7 June 2004)

Yates in talks on management buy-out (3 June 2004)