Tesco is poised to take full control of garden centre group Dobbies after Sir Tom Hunter's West Coast Capital reluctantly agreed to part with its 29.2% stake following a 1,200p-a-share cash bid.
Tesco announced on Wednesday it had received an undertaking from Hunter's private equity vehicle to accept the offer after an Edinburgh court rejected Hunter's attempt to block the deal.
Tesco, which already owns 65.5% of Dobbies, said the offer valued the retailer at £124.5m. If the deal went ahead Hunter would receive £36.3m. Tesco's interest in Dobbies would grow to 94.7% and the supermarket operator would apply to de-list the shares.
Tesco said it would compulsorily buy out minority shareholders and retain Dobbies' head office in Midlothian and its brand under the Tesco umbrella.