Thorium extends deadline for Yates buyout
Thorium, the bid company behind the planned management buy-out of Yates, has extended the deadline for shareholders to accept its offer for a further week.
The move gives Thorium time to negotiate with the newly-formed Yates Consortium, family shareholders holding a combined 20.4 per cent stake in the high street pub group.
The consortium believes the 140p-a-share on the table from Thorium, which has been recommended by Yates' independent directors, undervalues the business. It is understood to include Peter Dickson, the former chairman of Yates and great-grandson of founder Peter Yates.
Thorium, which needs 90 per cent acceptance, currently has just 26.6 per cent of shares committed to the offer. In addition to the consortium shareholders, others are holding off in the hope of a higher offer from Thorium or a new bid emerging.
Thorium has not increased its bid, and is urging shareholders to accept the offer by the new deadline of 3pm on August 2.
Yates chief executive Mark Jones (pictured) and the management team are being backed by US private equity firm GI Group. The consortium members have appointed banker Investec to advise on their options.
Yates, which operates 129 Yates and 23 Ha!Ha! outlets, has been trying to recover from a sales slump. Mr Jones believes that private equity ownbers will take a longer view that the City.
However, the consortium is arguing that the £18 million already invested in converting almost 100 bars to the new '21st century Yates' format should generate more long-term value than 140p-a-share represents.
