Carpetright recommends Meditor offer
Carpetright has bowed to the seemingly inevitable and recommended to shareholders that they accept the £15.18m takeover by its largest shareholder and owner of its bank borrowings.
‘We believe the offer is in the best interests of all stakeholders. 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,’ says Bob Ivell, Carpetright chairman.
Meditor already owns 29.9% of Carpetright shares, the chain’s bank borrowings – which are due to expire on 31 December – and is owed £25.7m by it.
‘I believe this represents the best outcome for all stakeholder groups. In particular, with Meditor's support and financial backing and without the constraints of a public market listing, Carpetright will be well positioned to compete more effectively. This will facilitate substantially increased investment in Carpetright's committed employees and its store estate as well as driving new initiatives and improvements. I am excited about the long term prospects and opportunities for the Carpetright business,’ says Talal Shakerchi, Meditor director.
Meditor is paying 5p a share: before it announced its possible offer on 31 October, shares were trading at just above 9p.