Carpetright agrees terms of takeover by Meditor
Carpetright has agreed the terms of a takeover by its biggest shareholder Meditor.
In a statement, the carpet and flooring retailer said the deal would see Meditor acquire the “entire issued and to be issued share capital” of Carpetright that it does not already own.
Meditor already owns 29.9% of the issued shares of Carpetright. The deal values the company at £15.2 million.
Shareholders have been asked to approve Meditor’s 5p per share offer which Carpetright said is in the best interests of all stakeholders. The retailer has said it requires a cash injection of around £80 million to pay off debts and provide working capital.
Bob Ivell, chairman of Carpetright, said: “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.”
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