Steinhoff takes itself out of the running for Home Retail Group

In a statement published on the London Stock Exchange website, Steinhoff has confirmed that it will not make an offer for Home Retail Group.

UPDATE: Sainsbury's has subsequently confirmed its offer. Learn more here.

Excerpts from the statement are below:

"On 19 February 2016, Steinhoff confirmed that it had approached the Board of HRG regarding a possible cash offer for the entire issued share capital of HRG.

Steinhoff now confirms that it does not intend to make an offer for HRG.

This announcement is made in accordance with Rule 2.8 of the Code.  As a result of this announcement, Steinhoff will, except with the consent of the UK Panel on Takeovers and Mergers, be bound by the restrictions contained in Rule 2.8 of the Code.

Steinhoff confirms that it will not announce an offer for HRG in competition with an announcement of a firm intention to make an offer for HRG by J Sainsbury Plc ("Sainsbury's") during the current offer period. Therefore, for the purposes of Note 2 on Rule 2.8 of the Code and in the event that Sainsbury's announces a firm intention to make an offer for HRG during the current offer period, this announcement will be treated as having been made after the Sainsbury's firm offer announcement.

The UK Panel on Takeovers and Mergers has agreed that, notwithstanding the provisions of Panel Statement 2016/4, Steinhoff is no longer to be treated by it as a potential competing offeror for HRG for the purposes of the Code and no further clarification announcement by Steinhoff will be required."

See the statement in full here.

Source: Insight DIY