SCOTTISH tycoon Sir Tom Hunter, who last week sold his minority stake in Dobbies garden centres to majority shareholder Tesco, says some of his best investments will happen this year amid market speculation that he will go head to head with the supermarket giant for other companies in the sector that come on the market.
Speaking to Scotland on Sunday from Monaco, where he is attending the Formula 1 Grand Prix, Hunter admitted he made errors in the battle for Dobbies.
"The mistake we made was not going for it earlier. I thought the supermarkets would be interest
ed in the sector at some time but not so quickly. We dilly-dallied with Dobbies for a year before Tesco came along. With hindsight that was a mistake."
Hunter said he is now rationalising his investments but the market for deals was tough and there were few signs yet of prices weakening.
"Prices have not been adjusted. There are no distressed sellers and values have not fallen," he said.
He sold high street chain d2 five months ago and last week disposed of loss-making Qube Footwear for a nominal £1 to JJB Sports as part of a "de-cluttering" of the investment portfolio.
He added that despite the difficult market climate he remained committed to retail and property, the sectors that have fuelled his billion pound fortune.
"We sat down a year ago and looked at what (his investment vehicle] West Coast Capital is all about and where we are going over the next three years," he said. "I wanted to get a better focus and concentrate on fewer, larger deals.
"Some of the best investments we will make will be in the next year or so. It will still be (mainly] retail and property," he said, pointing out that he also had investments in a life sciences project with Chris Evans, one of the sector's biggest backers.
"I reckon over the long term that will be a great place to be," he said. He also has a small investment in an oil company. "There will be no radical change in what we do. In retail there will be opportunities but at the present time the market is tough. We have invested in an e-commerce business (a joint venture with Icelandic firm Baugur]."
On Dobbies, he said he could have pursued the legal action further, but decided he "didn't want to be in court for 12 months".
Now that he has sold out of Dobbies, he will once again be in a position to rival Tesco for further acquisitions. Dobbies is raising £150m in new equity to help fund an expansion strategy.
James Barnes, Dobbies' chief executive, warned that Hunter's attempt to halt the issue in the Edinburgh Court of Session earlier this month threatened to derail the firm's plans.
The action was defeated and Tesco is now expected to de-list Dobbies, which Hunter's stake had prevented it from doing.
But Hunter, who owns the Wyevale and Blooms of Bressingham garden centre chains, was not prepared to quit without a fight.
Asked if there were likely to be further battles with Tesco over other garden centre targets, he said: "Could be."
The full article contains 539 words and appears in Scotland On Sunday newspaper.
