Home / Knowledge / News / Apparel/Garments / Mothercare to raise £100mn & fund strategic plan
Mothercare to raise £100mn & fund strategic plan
25
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

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search