Bargain Booze and Wine Rack owner Conviviality Retail suspends trading after takeover talks with Matthew Clarke confirmed

Trading in Aim-listed group Conviviality Retail has been suspended this morning, after confirming it is in takeover talks with Matthew Clark Holdings. 

 

Shares have been suspended because if the sale goes through it would constitute a reverse takeover under Aim rules, meaning privately-owned wholesaler Matthew Clark could become a public company without going through the IPO process. 

 

Conviviality Retail, whose share price climbed 2.3 per cent yesterday, said shares would remain suspended “until either these discussions have ceased or an Aim admission document has been published”. 

 

“The company will update shareholders with further information as appropriate.” 

 

The group, which owns Bargain Booze – whose recent ad campaign played Aldi and Lidl at their own game – and Wine Rack, and has a market cap of £103m, appointed Investec Bank as joint corporate broker last month, working alongside Nomad Zeus Capital. 

 

Its preliminary results are due out next Monday (13 July). 

 

Matthew Clark's most recent accounts, for the year to 28 February, show pre-tax profits of £17m on a turnover ot £811.1m. The company is jointly owned by Hertford Cellars, a subsidiary of Accolade Wines, and Punch Taverns.