Checkout at 40: Gubay Sells Out – Tesco Takes Over (April 1979)
Published on Dec 15 2015 7:41 AM
This year, Checkout commemorates its 40th anniversary under its current ownership, and with this in mind, every week, Retail Intelligence is going to ‘reel in the years’ and publish a story from our extensive archives. This week we go back to April 1979, when we reacted to the news that Tesco had bought Albery Gubay's stake in 3 Guys.
Mr Albert Gubay has sold his 49% stake in 3 Guys for an estimated £5.8 million to the British supermarket chain, Tesco Stores. Three months ago, Gubay picked up £3.8 million for his majority 51% stake and at his request, Tesco have paid him £5.8 million for the remaining 49%. To fund this purchase, Tesco unloaded 8.9 million shares to financial institutions in the City of London through top British stockbrokers Phillips & Drew.
Mr Gubay leaves Ireland we have estimated about £1 million the richer. This figure is difficult to estimate exactly, but his prime gain has been from capital appreciation of the Tallaght warehouse and his shopping centres, which have benefited from the upturn in the property market. This, added to shrewd site acquisition, has made Gubay’s Irish venture a profitable one.
The Irish Grocery market will face a much more formidable competitor in the quiet-spoken Ian McLaurin of Tesco, who will now be looking for a return on this major capital investment. Retailing Tesco-style is likely to be the order of the day – with a Pitsea-style Tesco hypermarket, with a Home n’ Wear section, likely to be on the cards for Rathfarnham. A new Irish MD for Tesco/3 Guys will be appointed shortly to mastermind the Irish operation – he faces a formidable task.
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