THE NEW York-based private equity group CD&R last night launched a deal to sell up to 120m shares in B&M, the retail discount chain to raise around £370m.
Sources suggested yesterday was the first time the group could dispose of shares since last year’s flotation. Shares in the group, which is run by the Arora brothers, were issued in the float at 270p and were last night trading at 323.5p ahead of the sale at the close of trading. Three of the Arora brothers own a combined 27 per cent of the equity.
Bankers said that the deal was initially launched for 100m shares, but was increased to 120m due to sufficient demand.
The sale was handled by Bank of America Merrill Lynch and Deutsche Bank. Goldman Sachs, which was a global co-ordinator on the original flotation, wasn’t involved in yesterday’s share sale. Lazard acted as a financial adviser to CD&R.
After the sale the private equity group will own less than 20 per cent of the equity in B&M, which was founded in Blackpool in 1978.
Bankers said the sale was covered at a zero discount to the closing price.