DGC Dobbies Garden

RNS Number:8657B                            
Dobbies Garden Centres PLC
09 August 2007


DOBBIES GARDEN CENTRES PLC ("Dobbies")


RECOMMENDED CASH OFFER FOR DOBBIES BY TESCO HOLDINGS


HIGHLIGHTS

Following today's announcement by West Coast Capital (Lios) Limited that it does
not intend to make an offer for Dobbies, the Board of Dobbies will be writing 
tomorrow to all Dobbies shareholders urging them to accept the Offer from 
Tesco Holdings without delay, for the following reasons:

* in the opinion of the Board the Offer is an excellent offer and is in
  the best interests of all Dobbies Shareholders;

* the Offer is the only offer available to Dobbies Shareholders;

* the Offer cannot now be increased (except if a competing offer is made for 
  Dobbies, or otherwise with the consent of the Panel) and, should it not
  succeed, the Board believes this would have a material adverse impact upon the
  Dobbies share price;

* the Offer values each Dobbies Share at 1500 pence in cash;

* the Offer represents a premium of approximately 23.2% to the Closing Price of 
  1217.5 pence per Dobbies Share on 29 May 2007 (the day before Dobbies 
  announced that it had been approached), since when the FTSE All-Share Index 
  has fallen by 5.3%, and the FTSE All-Share General Retailers Index has fallen 
  by 12.4%;

* the Offer represents a premium of approximately 109% to the Closing Price of 
  717.5 pence per Dobbies Share on 30 May 2006, a year before Dobbies announced 
  that it had been approached;

* the Offer equates to a price:earnings ratio of approximately 37 times Dobbies' 
  diluted earnings per share and an enterprise value of approximately 17.5 times 
  Dobbies' EBITDA, in each case for the twelve months ended 30 April 2007;

* the Offer represents the highest multiple of EBITDA paid in recent
  quoted transactions in the UK retail sector other than in a distress sale; and

* the Offer is significantly higher than the exit multiples for the acquisitions 
  of both Wyevale Garden Centres plc and Blooms of Bressingham Holdings plc.

Commenting further, Alex Hammond-Chambers, chairman of Dobbies said:

"The Offer from Tesco comes after 10 years for Dobbies as a public company,
during which time we have received wonderful support from our shareholders which
in turn has enabled all of us at Dobbies to create a business that a company of
the size and standing of Tesco would like to own.

We retain the view that the Offer from Tesco is an excellent one and that it is
in the best interests of all shareholders to accept it. I believe it is also in
the interests of the customers of Dobbies whose support has been important in
the success of the Company; and of the employees without whose commitment and
hard work we would not have been able to realise the shareholder value that the
Offer from Tesco establishes."


Enquiries:

Dobbies
James Barnes
Sharon Brown                                                        
Tel:          0131 663 6778

Deloitte Corporate Finance (Financial Adviser to Dobbies)
Cahal Dowds
Roger Esler                                                           
Tel:          0131 535 7342

Bell Lawrie (Nominated Adviser and Joint Broker to Dobbies)
Sandy Fraser                                                         
Tel:          0131 225 2566


Shore Capital (Joint Broker to Dobbies)
Alex Borrelli 
Tel:         020 7468 7932


Bell Pottinger Corporate & Financial (PR Adviser to Dobbies)
Ben Woodford
Emma Kent
Antonia Coad 
Tel:         020 7861 3232


The Directors of Dobbies accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the Directors (who
have taken all reasonable care to ensure that such is the case), the information
contained in this announcement for which they accept responsibility is in
accordance with the facts and does not omit anything likely to affect the import
of such information.

Deloitte Corporate Finance is acting exclusively for Dobbies and for no-one else
in connection with the Offer and will not regard any other person as its client
nor be responsible to anyone other than Dobbies for providing the protections
afforded to the clients of Deloitte Corporate Finance nor for providing advice
in relation to the Offer or any matter referred to in the Offer Document or this
announcement. Deloitte Corporate Finance is a division of Deloitte & Touche LLP,
which is authorised and regulated by the Financial Services Authority in respect
of regulated activities.

Bell Lawrie, a division of Brewin Dolphin Securities Limited, which is
authorised and regulated in the United Kingdom by the Financial Services
Authority, is acting exclusively for Dobbies and no-one else in connection with
the Offer and will not be responsible to anyone other than Dobbies for providing
the protections afforded to clients of Bell Lawrie nor for providing advice in
relation to the Offer or this announcement.

The Offer (including the Loan Note Alternative) is not being made, directly or
indirectly, in or into, and is not capable of acceptance in or from, Canada,
Australia or Japan. Accordingly, copies of the Offer Document, the Form of
Acceptance, this announcement and any related documents are not being, and must
not be, mailed or otherwise forwarded, distributed or sent in or into or from
Canada, Australia or Japan. Custodians, nominees and trustees should observe
these restrictions and should not send or distribute the Offer Document, the
Form of Acceptance or this announcement in or into Canada, Australia or Japan.
Any persons (including nominees, trustees and custodians) who may have a legal
or contractual obligation to forward the Offer Document, the Form of Acceptance
or this announcement and any related documents to any jurisdiction outside the
United Kingdom should seek appropriate advice and read paragraph 13 of the
letter from Tesco set out in Part II of the Offer Document and Part B of
Appendix I to the Offer Document before doing so.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
STRDKLFBDVBEBBV

Dobbies Garden Centres (LSE:DGC)
Historical Stock Chart
From Jun 2024 to Jul 2024

Dobbies Garden Centres (LSE:DGC)
Historical Stock Chart
From Jul 2023 to Jul 2024