Home Money Loungers shareholder ‘furious’ over £338m deal

Loungers shareholder ‘furious’ over £338m deal

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Private equity offering: Loungers owns the Cozy Club (pictured) and Brightside brands and has 280 sites

More shareholders have opposed the acquisition of a coffee chain by a US private equity firm.

Fund manager Downing, who has a 1.5 per cent stake in Loungers, said he was “absolutely furious” about the proposed deal. And Gresham House said it would use its nearly 4 percent 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 more than 4 per cent, said they opposed the acquisition.

But Canaccord Genuity Asset Management, which owns a 1.7 percent stake in Loungers, became the latest shareholder to back the deal.

Private equity offering: Loungers owns the Cozy Club (pictured) and Brightside brands and has 280 sites

This brings confirmed support for the takeover to 41.9 percent. Loungers, which owns the Cozy Club and Brightside brands and has 280 sites, this week agreed a £338m takeover by Majestic Wine owner Fortress Investment Group.

But Downing partner Judith Mackenzie said: “We are furious about this.” He said the attempt to buy sunbeds was “opportunistic.”

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