---
title: "Fortress Investment Groups Loungers Takeover Bid Faces Shareholder Resistance As 338m Offer Sparks Debate"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-11-30T13:50:58+00:00"
modified: "2024-11-30T13:50:58+00:00"
date: 2024-11-30
canonical: "https://stockmark.it/fortress-investment-groups-loungers-takeover-bid-faces-shareholder-resistance-as-338m-offer-sparks-debate/"
category: "Investment"
categories: ["Investment"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.stockmark-it-30-1.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Fortress Investment Groups Loungers Takeover Bid Faces Shareholder Resistance As 338m Offer Sparks Debate

**Published:** November 30, 2024
**Author:** Stockmark.IT Website
**Categories:** Investment
**Featured image:** ![Wall Street subway station sign. British equities outperform. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.stockmark-it-30-1.jpg?fit=1200%2C800&quality=89&ssl=1)

---

A significant shareholder rebellion has emerged against Fortress Investment Group’s proposed £338 million takeover of café-bar operator Loungers, despite the offer representing a 30% premium to the company’s previous share value.

The US private equity firm, majority-owned by Abu Dhabi’s Mubadala, tabled an offer of 310p per share. The bid has met substantial resistance from two major shareholders, with Slater Investments, holding a 10.4% stake, and AXA Investment Managers both declaring their intention to vote against the deal.

Mark Slater of Slater Investments criticised the timing, stating it was “the wrong time to be trying to sell a very good business of this kind.” This sentiment was echoed by Dan Harlow from AXA Investment Managers, who described the exit from public markets as “galling” and the bid as “opportunistically priced.”

Loungers, established in 2002 by Alex Reilley, Jake Bishop, and Dave Reid, has grown from a single Bristol location to 280 sites under the Lounge, Cosy Club, and Brightside brands. The company is projected to reach 292 outlets by the end of the current financial year.

The takeover announcement coincided with Loungers’ impressive half-year results, showing a 19.2% revenue increase to £178.3 million and a 53.8% jump in pre-tax profit to £5.95 million. Like-for-like sales grew by 4.7% during the period, with momentum continuing into the second half.

Chairman Alex Reilley, holding a 6.7% stake, supports the deal, viewing Fortress as “an ideal partner” for the company’s next growth phase. Both Reilley and co-founder Bishop, who owns 6.3%, plan to retain the majority of their investment in the business.

The share price responded positively to the news, climbing 27.7% to close at 304p, approaching the offer price but suggesting some market uncertainty about the deal’s completion given the emerging shareholder opposition.

---

**Original URL:** https://stockmark.it/fortress-investment-groups-loungers-takeover-bid-faces-shareholder-resistance-as-338m-offer-sparks-debate/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*