More shareholders have come out to oppose the takeover of a cafe-bar chain by US private equity.
Fund manager Downing, which has a 1.5 per cent stake in Loungers, said it was ‘absolutely furious’ about the proposed deal. And Gresham House said it would use its near-4 per cent stake to ‘vote against this transaction’.
The comments came after Slater Investments, which owns more than 10 per cent of Loungers, and Axa Investment Management, with over 4 per cent, said they were opposed to the takeover.
But Canaccord Genuity Asset Management, which holds a 1.7 per cent stake in Loungers, became the latest shareholder to back the deal.
Private Equity bid: Loungers owns the Cosy Club (pictured) and Brightside brands and has 280 sites
That takes confirmed support for the takeover to 41.9 per cent. Loungers, which owns the Cosy Club and Brightside brands and has 280 sites, this week agreed to a £338m takeover by Majestic Wine owner Fortress Investment Group.
But Judith Mackenzie, a partner at Downing, said: ‘We are furious about this.’ She said the attempt to buy Loungers was ‘opportunistic’.
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