Home / Knowledge / News / Apparel/Garments / Mothercare to raise £100mn & fund strategic plan
Mothercare to raise £100mn & fund strategic plan
Sep '14
Mothercare plc, the largest UK specialist retailer in its segment, said it will raise some £100 million through a rights issue and which will be £95 million, net of expenses.

The rights issue is a fully underwritten 9 for 10 rights issue at a price of 125 pence per new ordinary share, the retailer said.

The issue price represents a 34.2 percent discount to the theoretical ex-rights price of a share, when calculated by reference to the closing price of 248.25 pence per share on Sept 22.

Mothercare also added that the rights issue price also represents a 49.6 percent discount to the closing price of 248.25 pence per share also on Sept 22.

According to Mothercare, the rights issue is intended to enable the Group to deliver on its new strategic plan designed to turnaround its UK business.

The funds are also expected to transform the Group into a digitally-led business, supported by a modern store estate, well-invested IT systems and an efficient operational infrastructure.

Underpinned by this new strategic plan, Mothercare directors believe that it will then be able to unlock the value of its already successful global business and buttress its future growth.

The retailer will also repay a significant amount of its outstanding debt from the issue proceeds and offer it with a stronger capital base.

Mothercare plc is the largest UK specialist retailer in its segment and has nearly 1,500 Mothercare and ELC stores spanning approximately 60 countries. (AR)

Fibre2fashion News Desk - India

Must ReadView All

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search