Peter Simon, chairman of UK retailer Monsoon, has offered to pay around GBP181 million for the 24% stake in the company that he does not already own. The retailer has recommended the offer to shareholders.
Mr Simon, who holds a 76% stake in the company in conjunction with his family, has offered 424 pence per share - a premium of around 4.0% on the closing price of 407.5 pence per share on September 27, 2007. The offer price is 7.9% higher than the average closing price over the last 6 months and values the company at GBP755 million.
Monsoon also issued a trading update, saying that trading since the start of the new financial year on May 27, 2007 has "continued to be very poor" in the face of a deteriorating economic environment and higher interest rates.
Total sales for the first 17 weeks of the financial year to September 22 were down 2%, with like-for-like sales down 9%, compared to a 6% decline last year. Both UK and international sales were equally affected and suffered similar like-for-like declines.