Tesco has put in a 1,200p a share cash offer to buy Dobbies Garden Centres, valuing the chain at £124.5m.

Tesco already holds a 65.5% share in the 21-strong chain and has been thwarted in increasing this by West Coast Capital, the investment vehicle of Sir Tom Hunter, who owns rival Wyevale and holds a 29.2% stake in Dobbies.

However, Tesco said West Coast Capital had agreed to accept the offer.

“Tesco Holdings believes that the offer is good for Dobbies' customers, staff and the wider community,” the retailer said in a statement.

“It continues to be Tesco Holdings' intention to retain Dobbies' head office in Midlothian and its unique brand, heritage and culture under the Tesco Group umbrella.”

Topics