This paves the way for Britain’s biggest retailer to take full control of the business, valued at £125million, ending a tussle that has been rumbling on since last June.

Scotland’s richest man, Hunter has agreed to sell the 29.2 per cent stake held by his West Coast Capital investment firm for 1200p a share, or £36.3million.

Tesco, with 65.6 per cent of the shares, will be free to mop up the remaining minority holders and delist Dobbies shares from the Aim market.

The supermarket has pledged to retain the Dobbies brand name and head office in Midlothian.

Last June Tesco launched a £156million bid for Dobbies at 1500p a share but its plans were thwarted by Hunter, who owns the rival Wyevale and Blooms of Bressingham garden centre chains.

He built up a blocking stake in the business but then launched a legal battle with Tesco after the supermarket unveiled plans for a £150million cash call on shareholders.

Under the terms of the fundraising, his stake would have been massively diluted unless he spent £44million buying more shares.

Hunter is thought to have broken even on his investment in Dobbies, having built up his stake at prices between 500p and 1750p a share.

One analyst said: “It could have taken Hunter two years to fight this and all that time his money would have been tied up and going nowhere.”

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