23rd Jul 2015 16:13
LONDON (Alliance News) - Private equity firm Clayton, Dubilier & Rice and SSA Investments, the Arora family investment vehicle, intend to sell up to 120.0 million shares - a 12% stake - in discount retailer B&M European Value Retail SA, according to a statement late Thursday.
CD&R expects to retain approximately 11% stake in B&M, and SSA is to retain a 21% stake. B&M, which is chaired by ex-Tesco chief executive Terry Leahy, listed in London in June 2014, joining the main market with a GBP2.7 billion market capitalisation. It currently has a market cap of GBP3.52 billion, making the 12% stake being sold worth GBP422.4 million.
The statement said that Chief Executive Simon Arora and and UK Trading Director Bobby Arora are "fully committed to the business and are confident in the outlook for B&M both in the UK and internationally".
"SSA Investments' participation in the transaction will provide further liquidity in B&M, and the proceeds from the sale will be used to diversify the Aroras' investment portfolio. SSA Investments remains B&M's largest shareholder and is committed to participating in B&M's exciting future growth prospects," the statement added.
"CD&R reiterates its support and confidence in B&M's management team to successfully implement the company's growth strategy," the statement continued.
The shares are being offered to institutional investors through an accelerated bookbuild.
B&M shares closed up 0.9% at 352.8 pence on Thursday, well up from the 270p pricing of its initial public offering.
By Samuel Agini; [email protected]; @samuelagini
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