Costcutter chairman Colin Graves has defended the controversial £200 million merger with wholesaler Nisa-Today’s - saying the deal was “not to feed fat cats”.
The proposals will see the Costcutter management own a 30 per cent stake in the merged business headed up by Graves.
But rebel Nisa-Today’s shareholders, who resent the loss of decision-making powers and the increase in debt, have opposed the deal.
Graves said: “Debt will a lot less than people expect anticipate. It’s not £100,m it’s ore lie £90m or £80m. If it was too highly geared banks wouldn’t be supporting this.”
He also backed the controversial £9m pay-off to Dudley Ramsden, the chairman of Nisa-Today’s, who will renounce an executive role in the deal and become president of the enlarged company.
Plans for the merger will see Nisa-Today’s shareholders gaining a 60 per cent stake in the merged business.
But East Anglian shopkeeper Mark Proudfoot, who is leading rebel Nisa shareholders, claims 25 per cent of shareholders are opposed to the deal - enough to block the merger.
Proudfoot said: “More and more members are objecting to the deal, even though it has been sweetened.
“It’s obvious the executives are trying to kidnap the company.”
