[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 9 June, 2004, 06:36 GMT 07:36 UK
Yates agrees to management buyout
Yates bar
There is fierce competition among bar operators
Bar operator Yates Group has recommended a 93m ($171m) buyout offer led by the firm's management.

Thorium - a company formed by Yates' management team and private equity firm GI Partners - has offered 140 pence per share for Yates.

Yates chairman Mike Hennessy described the offer as an "attractive price".

News of the deal came as Yates - which operates the Yates and Ha!Ha! chains - unveiled annual pre-tax profits of 4.1m, down from 9.7m last year.

High streets have become overly populated with bars and night-clubs
Mike Hennessy, Yates chairman
Pre-tax profits before exceptional items were 10.6m, up from 10m last year, while turnover was down 1.2% to 151.3m.

Like-for-like sales at the firm's Yates wine bars were down 3.9%, although sales at the refurbished 21st Century Yates were up 1.6%.

The Ha!Ha! chain saw like-for-like sales up by 3.2%.

"Much has been achieved at Yates in the last three years," said Mr Hennessey.

"However, during that same period high streets have become overly populated with bars and night-clubs and the sector is now intensely competitive.

"The independent directors therefore believe that the offer represents an attractive price for Yates shareholders."




SEE ALSO:
Yates waits for management buyout
07 Jun 04  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific