Somerfield will re-value it 1,300-store property portfolio in its full-year results in a bid to justify rejecting a 120p-a-share bid approach from entrepreneurs John Lovering and Bob Mackenzie.
Somerfield's property portfolio has a book value of £542million but this has not been re-assessed for seven years. The group has confirmed the value of its property would feature in its results briefing on July 2.
Somerfield chief executive John Von Spreckelsen rejected the approach for the company, not because of any of the conditions in the bid but wholly on value grounds. Von Spreckelsen has flagged plan to refurbish both Somerfield and Kwik Save chains, which could cost around £800 million. So far the group has already spent over £150m on refurbishments.
Meanwhile, it is now thought that the bid team of Lovering and Mackenzie will abandon their interest in the group after their improved offer of £593m was rejected.