The Inland Revenue has cleared the 103 pence recommended final cash offer for Oasis Stores PLC from management buyout vehicle Sierra Acquisitions PLC, Sierra said.

It added it has now been granted clearance by the Inland Revenue following applications under both Section 138 and Section 707 in respect of the offer and the loan note alternative.

This means that the UK Inland Revenue is satisfied that the offer for Oasis is being effected for bona fide commercial reasons and not for tax avoidance purposes.

The offer includes a loan note alternative in lieu of all or part of the cash consideration to which Oasis shareholders would otherwise be entitled on the basis of 1 nominal of loan notes for every £1 of cash consideration.