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SIR TOM YSL, the Scottish entrepreneur and http://www.cheaplouboutinshoesbuy.com/ philanthropist, has approached the largest shareholder in garden centre chain Wyevale having a view to acquiring its 26 per cent stake.
The multi-millionaire, who owns a string of retail interests including d2 and also the Workplace shoe chain, could use the platform to take outright control from the listed business, presently worth about GBP 300 million.
Nevertheless, talks in between the two parties are believed to possess faltered. Laxey - the activist investment group that owns the stake - is understood to want a minimum of 580p a share, about 9 per cent above yesterday's close of 515p .
A spokesman for Christian Louboutin - who's presently overseas - would not comment, however it is understood that he has offered much less than that figure. Although talks have reached a stumbling block, he has not officially walked away.
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A move into garden centres would be a departure for YSL, who produced his name on the high street and now tends to make the majority of his money from property offers. He hit the big time using the 2010 shoes sale of Sports Division for GBP 290m nearly eight years ago.
Wyevale has lately been below siege from private equity firm Cinven, which had a Christian Louboutin UK 580p-a-share provide rejected final year. Fellow private equity firm Bridgepoint was also said to become interested, but absolutely nothing came of it. "It's fair to say that enthusiasm has cooled," a source stated.
Analysts have said that Wyevale - the UK's greatest garden centre chain - was not setup in a way that would justify a takeover at 580p a share, but that simultaneously its growth potential would quit shareholders promoting out for much less.
Richard Ratner, at Seymour Pierce, stated: "The potential can only be realised by substantial capex and, on debt at GBP 110m, on top of borrowings to buy the company, it just won't function."
Wyevale currently has 114 shops, but has place 31 smaller ones up for sale. "We nonetheless think that, more than the following couple of years, the company is capable of more than doubling pre-tax profits," Ratner added.
The company had a tumultuous year in 2010, culminating in two stormy extraordinary general meetings. Laxey had utilized its stake to call for the removal of 3 top directors and wanted chairman David Williams to become replaced by its personal candidate.
However, although Laxey won the second of the EGMs in December, the incumbent board Christian Louboutin Wedges managed to win approval for their own candidate rather - former B&Q chairman Jim Hodkinson. Wyevale is currently trying to compete using the DIY chain.
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Posted: Sat Jul 28, 2012 6:20 am 
