Carpetright confirms takeover offer by major shareholder
Carpetright and its major shareholder Meditor Capital Management have agreed terms to take the retailer private.
The firm already has a 29.9% stake in Carpetright held by its Meditor Fund and has confirmed its offer of 5p in cash per share, valuing Carpertright at just under £15.4m.
It has established a new vehicle, Meditor Holdings Ltd, for the purpose of the acquisition, which is a wholly-owned subsidiary of the Meditor Fund.
Carpetright and its major shareholder Meditor Capital Management have agreed terms to take the retailer private.
The firm already has a 29.9% stake in Carpetright held by its Meditor Fund and has confirmed its offer of 5p in cash per share, valuing Carpertright at just under £15.4m.
It has established a new vehicle, Meditor Holdings Ltd, for the purpose of the acquisition, which is a wholly-owned subsidiary of the Meditor Fund.
The Meditor Fund previously purchased the lenders’ interests in Carpetright’s revolving credit facility, which is due to expire at the end of the year, as are its overdraft facilities.
Furthermore, an unsecured loan provided to Carpetright by the Meditor Fund on 11 May 2018 is due for repayment on 31 July 2020 at a value of £25.7m.
Carpetright’s directors have unanimously recommended the takeover.
Last year, following a CVA process, Carpetright closed 65 underperforming stores in the 26 weeks to 27 October.
Bob Ivell, chairman of Carpetright, said: “We believe the MHL offer is in the best interests of all stakeholders. While we have made significant progress with our recovery plan for the Carpetright Group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market. With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business.”
Talal Shakerchi, director of MHL, added: “I believe this scheme represents the best outcome for all stakeholder groups. In particular, with Meditor’s support and financial backing and without the constraints of a public market listing, Carpetright will be well positioned to compete more effectively. This will facilitate substantially increased investment in Carpetright’s committed employees and its store estate as well as driving new initiatives and improvements.”
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