15th Feb 2016 08:34
LONDON (Alliance News) - Boohoo.com PLC on Monday said it has agreed to buy a property on China Lane, Manchester for GBP1.6 million.
The deal to acquire the property was made with the Jogo Associates Ltd pension scheme, whose beneficiaries include Mahmud Kamani, co-founder and joint chief executive of Boohoo. The online fashion retailer said the terms of the deal were fair to its shareholders.
"The directors of boohoo (with the exception of Mahmud Kamani, who is deemed not to be independent in connection with this transaction) consider, having consulted with Zeus Capital Ltd in its capacity as boohoo's nominated adviser, that the terms of the transaction are reasonable insofar as shareholders are concerned," the company said.
Boohoo said it has an option to sell the asset to Kamani at the original purchase price in the event it is unable to secure planning permission for office use of the property.
The fashion retailer said the purchase was made as part of a move designed to extend head office space as it expands its business and workforce in the area to support growth plans.
Shares in Boohoo were up 2.4% at 39.94 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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