Dobbies 'in clash with shareholder'
Garden centre chain Dobbies has set for a legal clash with billionaire entrepreneur Sir Tom Hunter over its plans to raise £150 million from shareholders.
Sir Tom, who owns 29.9% of the chain, is attempting to block an open offer announced by the Midlothian-based group in April to strengthen its balance sheet and fund expansion.
Supermarket giant Tesco owns 65% of the chain after a £155.6 million takeover deal last year, although Sir Tom said at the time the deal undervalued the business.
It will cost Sir Tom's West Coast Capital (WCC) investment vehicle around £40 million to take up the extra shares and maintain its stake in the business. If it does not, WCC's holding could fall to around 15%.
Sir Tom is seeking an interim order to block the proposals, although Dobbies said it would make a "robust defence" of its plans at a court hearing. WCC was unavailable for comment.
