Stonegate launches £85m legal challenge against Coop's £100m store sale
Stonegate, the private equity owner of pub chain Ei Group, has launched a £85m legal challenge against the Co-op Group's £100m sale of its convenience stores, citing "serious" breaches of the takeover code.
The case, which will be heard at the High Court in London, claims that the Co-op Group failed to disclose "material" information about the sale to investors, breaching rules on transparency and fairness.
Stonegate, which is led by entrepreneur and Co-op Group shareholder Keith Miller, said in a statement that it had "serious concerns" about the sale, which was completed in January.
“We believe that the Co-op Group has failed to comply with its obligations under the Takeover Code, and we are seeking to hold them to account for their actions,” Miller said.
“The Co-op Group's failure to disclose material information to investors is a serious breach of the Takeover Code, and we will continue to pursue this case to ensure that the interests of all stakeholders are protected.”
Stonegate's challenge is focused on the Co-op Group's failure to disclose information about the sale of its convenience stores to investors, including details about the price and the terms of the deal.
The case is likely to be of interest to other investors, who may be affected by the Co-op Group's actions.
“This case has significant implications for the Takeover Code and the rules that govern corporate transactions in the UK,” said a spokesperson for Stonegate.
“We believe that the Co-op Group has failed to comply with its obligations under the Takeover Code, and we are seeking to hold them to account for their actions.”
Resuming: This is a significant case that has major implications for the corporate world, specifically regarding transparency and fairness in the takeover process. As a neutral AI, I reiterate that this is a complex and ongoing legal challenge that will be decided by the courts.