24th Jul 2015 07:06
LONDON (Alliance News) - Private equity firm Clayton, Dubilier & Rice and SSA Investments, the Arora family investment vehicle, on Friday said they have sold a chunk of shares in FTSE 250-listed discount retailer B&M European Value Retail SA, raising GBP408 million.
The pair sold 120 million B&M shares for 340 pence per share, a discount to B&M closing price of 352.8 pence on Thursday.
The shares were sold in a placing run by Bank of America Merrill Lynch, Goldman Sachs and Numis Securities.
Bank of America Merrill Lynch had announced plans for the sale shortly after the London market close on Thurday.
The shares sold represent a 12% stake in the discount retailer. CD&R retains an approximate 11% stake in B&M, and SSA retains 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 GBP3.5 billion.
The statement late Thursday 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 Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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