Shareholder bid halves Carpetright share price

Shareholder bid halves Carpetright share price

Asset manager Meditor has made an offer of 5 pence (6 euro cents) per share for the British Carpetright group, of which it already is the largest shareholder - with around a third of the shares in its portfolio.

 

Debt

The carpet group is burdened with a debt of 56 million pounds and has been looking for a structural solution for some time now. Last year, Carpetright closed eighty stores and in April, Meditor took over a debt of 40.7 million pounds (45 million euros) from the chain, which resulted in the company being less dependent on the banks.

 

Should it come to a new deal, then Meditor will convert Carpetright's debts into shares, Belgian business newspaper De Tijd writes. The carpet chain is estimated to require some 80 million pounds (90 million euros) to pay off all debts.

 

The carpet store chain also has an active presence in Belgium and the Netherlands, where more than 100 of the 330 stores are located. As a result of these acquisition rumours, the share price on the London Stock Exchange has almost halved.