DGC Dobbies Garden

RNS Number:0285C
Dobbies Garden Centres PLC
14 August 2007


Dobbies Garden Centres plc ("Dobbies")


Further statement re recommended cash offer by Tesco Holdings


The Board of Dobbies is today writing to all Dobbies shareholders enclosing a
copy of the clarificatory announcement released by Dobbies yesterday evening, 13
August 2007 and restating the background to and some of the key reasons for its
continuing to recommend that all shareholders accept the Offer from Tesco
Holdings:


The letter reminds Dobbies shareholders that 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 letter also reminds all shareholders that the offer represents the highest
multiple of EBITDA paid in recent quoted transactions in the UK retail sector
other than in a distress sale.


The letter emphasises that the offer from Tesco Holdings remains the only offer
available to Dobbies Shareholders and is open for acceptance only until 1.00pm
(London Time) this Sunday 19 August 2007. In the absence of a competing offer
from a third party (or otherwise with the consent of the Panel) the offer will
not be extended beyond that date unless it is by then unconditional as to
acceptances.


The letter repeats the strongly held view of the Dobbies Board that, if the
offer lapses and the substantial 'bid premium' available to all Dobbies
Shareholders through the offer is removed, this may materially adversely impact
the Dobbies share price.


The letter also reminds shareholders that if the offer lapses there can be no
certainty at this point as to whether and on what terms any new offer for
Dobbies might be made. In particular, there is no obligation upon Tesco Holdings
or West Coast Capital to make any further offer for the Company at any time in
the future in the event that the offer lapses.


Finally, the letter states that the Board of Dobbies continues unanimously to
recommend that all Dobbies Shareholders accept the offer without delay.


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



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

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