15th Jan 2014 10:32
LONDON (Alliance News) - Clothing and home-furnishings retailer Laura Ashley Holdings PLC Wednesday said it has sold its entire stake in men's formal-wear chain Moss Bros Group PLC, for just under GBP8 million.
The disposal was made on Tuesday as Moss Bros shares shot up 22% to close at 90.50 pence per share. The men's retailer had said that it expects to exceed full-year market expectations, boosted by a strong Christmas period.
Laura Ashley said that the proceeds of the sale will boost its financial position, and will be used for additional working capital, as well as other purposes.
The company sold the 9.5 million shares its owned in Moss Bros at a price of 84 pence per share. The shares had represented a 9.6% stake in Moss Bros.
Laura Ashley shares were trading 3.1% higher Wednesday morning, at 25.25 pence per share, while Moss Bros shares were adding to their gains, up 4.2% at 94.31 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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