GUS to sell further Burberry stake
Move to increased independence for fashion brand
November 19 2003
Retail group GUS is sell a further 10 per cent of its stake in fashion brand Burberry.
The placing of 50m shares in the successful fashion operation follows reports that GUS has considered a full sell-off of Burberry in order to focus on its core retail business, Argos and Homebase.
The flotation of 23 per cent of Burberry was successfully completed in July 2002. GUS said Burberry’s strong performance since then means the board believes “now is the appropriate time to improve the liquidity in Burberry shares by reducing further its stake.”
The proceeds will be used initially to reduce debt, with GUS also considering returning some cash to shareholders.
GUS chairman Sir Victor Blank, Chairman of GUS, said: “As its recent results demonstrate, Burberry is performing well, has a strong management team and a clear strategy for growth.
“We are making more shares available in order to improve liquidity and enable new shareholders to participate in its future growth. With its continuing majority stake, GUS remains a committed investor in Burberry.”
