Tesco share price rallies as investors okay tie-up with Booker

Shareholders in wholesaler also back deal

Tesco share price rallies as investors okay tie-up with Booker

Shares in Tesco (LON:TSCO) have spiked in London in today’s session, as shareholders in the blue-chip grocer okayed the company’s tie-up with Booker Group (LON:BOK). Reuters meanwhile reported that investors in the wholesaler had also voted in favour of the deal despite opposition by advisory bodies which argued that the price undervalued the mid-cap company.

As of 13:39 GMT, Tesco’s share price had jumped 2.70 percent to 212.70p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent in the red at 7,278.10 points. Booker’s share price meanwhile has added 2.46 percent to 229.00p, as compared with a 0.49-percent dip in the mid-cap FTSE 250 index.

Tesco shareholders back deal

Tesco announced in a statement that at today’s general meeting, 85.22 percent of voters had backed the company’s merger with Booker Group, with 14.78 percent of voters rejecting the proposal. Britain’s biggest grocer required the support of 50 percent of votes cast to pass the deal which is set to create the UK’s biggest food group.

“It’s been carried fairly comfortably,” Chairman John Allan, said at the meeting in central London, as quoted by Reuters.

Booker vote update

The newswire further reported that according to provisional voting figures, over at Booker’s general meeting, 83.4 percent of votes cast approved the deal, which was valued at £3.7 billion when it was agreed in January last year but was worth £3.95 billion at Tuesday’s closing share prices. The wholesaler required the support of 75 percent of votes cast for the deal to proceed. At the time of writing, Booker had not yet issued a statement summarising the vote to the London Stock Exchange.

The deal, which has already been cleared by the Competition and Markets Authority, is expected to complete on March 5.

As of 14:01 GMT, Wednesday, 28 February, Tesco PLC share price is 213.11p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all