As a follow on to my last blog, relating to the financial problems surrounding convenience chain McColls, a rescue is taking place.
The Issa brothers who own the EG group are ready to take over the failing company post it falling into the hands of the administrators – PwC.
EG Group is reportedly preparing to take over McColl’s via a pre-pack administration. A pre-pack administration – which allows an insolvent firm to sell assets to bidders.
Get what they want at the price they want & materialise the synergies. (2+2 = 5).
The Issa brothers are known as the quiet billionaires whose company the EG group have many petrol stations etc world wide. They also “rescued” Asda post the failed merger with Sainsbury’s a few years ago.
Morrisons tried to do a deal with the Mcolls lenders, but clearly that did not sit well with the latter.
Cash in their hands is better than the chance of dividends tomorrow via a possible equity for debt swap ?