Londis retailers have voted overwhelmingly in support of a buyout from Budgens owner Musgrave UK
As expected, the majority of Londis shareholders – 97 per cent – gave their approval of the proposed acquisition at an Extraordinary General Meeting held in Birmingham on June 22.
Musgrave and Londis will now await court approval for the £60m deal in a hearing expected to happen in mid-July.
Subject to court approval, the sale will give each shareholder £31,645 – half paid on August 9, and the other half a year later as long as the retailer continues trading with Musgrave.
Eoin McGettigan, executive chairman of Musgrave, said: “We are delighted that Londis shareholders have voted in support of our offer. We always believed that our proposal combined a full and fair price with a perfect strategic fit for the Londis retailers.
“Our aim is to deliver improvements in areas such as chilled and fresh ranges, to sustain investment in point-of-sale systems and to maintain and improve pricing structures.”
Musgrave will continue to operate the Londis brand and McGettigan added that it aims to develop strong internal communications structures to ensure there is “meaningful dialogue” with Londis retailers.
Peter McNamara, vice-chairman and acting chief executive of Londis, said: “The shareholders of Londis have taken an important decision – a decision which secures Londis’s position as the UK’s leading symbol group. After nearly six months of evaluating the right way forward, we all can now get back to the real task: creating a business that will be the most powerful force in the convenience sector serving the independent retailer.”