Cinven withdraws Wyevale bid

The garden centres firm has terminated discussions with Cinven following the withdrawal of a bid believed to have had the support of Wyevale’s largest shareholder.

London-based private equity firm Cinven has withdrawn its £332 million bid (€488 million; $593 million) for Wyevale Garden Centres according to a statement from the Hereford-based garden centre operator.

Earlier this month, Gnome Acquisitions, a bid vehicle established by Cinven, was believed to have secured the support of Wyevale’s largest shareholder, Laxey Partners, for its 580 pence per share offer, valuing the company at around £332 million.

That offer has now been withdrawn, according to a statement on Wyevale’s website which reads: “Cinven has now informed the Wyevale board that it is not willing to make a takeover offer at a price of at least 580 pence per share and that any offer it might make would not be made before January 2006 at the earliest.

“The Wyevale board does not believe the continuing uncertainty as to a possible takeover is in the best interests of Wyevale or its shareholders and, accordingly, the Wyevale board has terminated discussions with Cinven.”

Cinven was reported to have been one of six private equity firms interested in bidding for Wyevale earlier in the year, but Laxey is believed to have been against a sale at the time.