(Alliance News) - The UK's Takover Panel on Tuesday ruled that Brigadier Acquisition Co Ltd is not allowed to back out of its GBP22.6 million acquisition of Moss Bros Group PLC.
The regulatory body said it has found that Brigadier has not established that the circumstances which give rise to its right to invoke the relevant conditions are significant in the context of its offer as required by Rule 13.5a of the Takeover Code. Therefore Brigadier has to proceed with the buy.
Brigadier - which owns UK casual-wear retailer Crew Clothing - has been granted a short period of time to decide whether to request a review of the ruling.
In March, Moss Bros agreed to Brigadier's 22 pence per Moss Bros share takeover bid.
However, in April, Brigadier attempted to pull out of the deal quoting its reason as the negative impact the Covid-19 pandemic and related UK government measures have had on Moss Bros. In response, the high-street menswear retailer noted that Brigadier "may not invoke a condition" which would mean the takeover did not have to proceed, "unless the circumstances which give rise to the right to invoke the condition are of material significance" to Brigadier in context of the offer.
Moss Bros shares closed 4.8% higher at 17.82 pence each on Tuesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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