SCOTS entrepreneur Sir Tom Hunter yesterday emerged as a significant shareholder in Dobbies Garden Centres - just as his acquisition of rival Wyevale Garden Centres is poised to be completed.
When asked if the entrepreneur had plans to continue to build his stake in Dalkeithbased Dobbies and then merge it with Wyevale, a spokesman for Hunter's West Coast Capital private equity vehicle said: "I'm not going to be drawn on that."
However, yesterday's announcement will doubtless fuel speculation that Hunter may be planting the seeds of a merger, possibly by putting together the same consortium that acquired Wyevale.
Hunter's company - an offshoot of West Coast Capital called Lios, which is Gaelic for garden - now owns 3.69per cent of Dobbies.
The shares purchase on June 12 for the first time takes the entrepreneur's stake in Dobbies above the 3per cent mark, thereby forcing a regulatory stock market announcement.
Nonetheless, the West Coast Capital spokesman last night insisted: "We're just adding to our portfolio of equities."
Dobbies announced to the City yesterday that West Coast had purchased 78,300 ordinary shares in the company, taking its total stake to 368,3000 shares, or 3.69per cent of the company's issued share capital.
Earlier this year, Hunter's West Coast acquired Wyevale Garden Centres with a consortium comprising Bank of Scotland, property developer Nick Leslau and Icelandic retail group Baugur - although the deal is not scheduled to be completed until June 19.
Including debt, the Wyevale deal was worth GBP445.1m. Upon completion, the gardens retail group will be 40per cent owned by West Coast Capital.
Asked about the naming of the new offshoot ompany, Lios, the spokesman added: "We like to be a bit poetic at West Coast Capital."
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