Tesco share price: Group unveils merger with Booker

on Jan 27, 2017
Updated: Oct 21, 2019

Tesco (LON:TSCO) has unveiled a merger with Booker Group this morning.

**Highlights from the statement:**
The boards of Tesco PLC (“Tesco”), the UK’s leading food retailer, and Booker Group plc (“Booker”), the UK’s leading food wholesaler, are pleased to announce that they have reached an agreement on the terms of a recommended share and cash merger (the “Merger”) to create the UK’s leading food business.
The Combined Group will bring benefits for consumers, independent retailers, caterers, small businesses, suppliers, and colleagues, as well as delivering significant value to shareholders.

The Combined Group will be well placed to serve the large, established ‘in home’ food market as well as the faster growing ‘out of home’ food market. By bringing together Tesco and Booker’s retail and wholesale expertise, supply chain and digital capabilities, the Combined Group will be able to provide greater choice, quality, price and service in the food market, whilst improving efficiency and reducing food waste. The Combined Group will bring together the capacity and capability to generate new growth and deliver significant revenue and cost synergies.

· Under the terms of the Merger, each Booker Scheme Shareholder will receive:
for each Booker Scheme Share: 0.861 New Tesco Shares; and
42.6 pence in cash
· Based on the Closing Price of 189.0 pence per Tesco Share on 26 January 2017 (being the last Business Day before the date of this Announcement), the terms of the Merger represent:
· a value of approximately 205.3 pence per Booker Share;
· a value of approximately £3.7 billion for Booker’s ordinary share capital; and
· a premium of approximately 12 per cent. to the Closing Price of 183.1 pence per Booker Share on 26 January 2017, being the last Business Day prior to this Announcement.
**More to follow…**
As of 07:08 GMT, Friday, 27 January, Tesco PLC share price is 190.01p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Food & Beverage Retail Stock Market