The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Uniq abandons bid talks due to pension worries

UK food company Uniq has terminated bid talks with a private equity player over fears that a highly leveraged takeover would jeopardize the company's pension fund. The company said the main reason for terminating talks was "the leveraged nature of the potential bidder's proposed capital structure and its impact on the pension position."

The trustees reportedly feared that being taken over by a heavily borrowed bid vehicle would mean that, in the case of insolvency, the pension fund members would lose their pensions.

"The company has concluded that the latest proposal from the remaining party did not provide an acceptable basis for the company and the pension trustee to continue discussions," the company said.

Uniq's pension fund has a deficit of £102.3 million ($196.5 million). The company has said that from next month it will start increasing contributions from £8.4 million to £15 million per annum.

Another deal that was stalled by pension trustee anxiety was European private equity firm Permira's aborted £940 million takeover of UK retailer WH Smith in June 2004.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree