4th Feb 2015 07:34
LONDON (Alliance News) - Private equity firm Clayton, Dubilier & Rice has sold a further 12% stake in B&M European Value Retail SA, the discount retailer chaired by former Tesco PLC Chief Executive Terry Leahy, taking its holding down to 17.4%, Bank of America Merrill Lynch said Wednesday.
Clayton, Dubilier & Rice and the Arora family listed the company on the London Stock Exchange in June last year, but retained a significant stake.
According to Bank of Americal Merrill Lynch, which jointly conducted the new placing by the private equity firm alongside Deutsche Bank, it has now sold a further 120 million B&M shares for 320 pence a share, raising gross proceeds of GBP384 million.
The sale means that B&M's free float will rise to above 50%, meaning that it's eligible to be included in a FTSE index.
The company priced its IPO on the London main market at 270 pence a share, giving it an initial market capitalisation of GBP2.7 billion, but its shares have performed strongly since. The stock closed at 323.50 pence on Tuesday, giving it a market capitalisation of GBP3.2 billion. That value would put it in the FTSE 250 if the FTSE reviewing committee decide it meets the criteria for inclusion.
By Steve McGrath; [email protected]; @stevemcgrath1
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