Troubled Baugur Group to offload Debenhams stake

Beleaguered Icelandic investor Baugur Group has mandated HSBC to sell its 13% stake in retailer Debenhams, through a placing priced at 40-45 pence per share. It has been said that a cash call for Debenhams will be more likely to happen once Baugur has exited the business, with shareholders in the company reported to have refused to back a capital raising if it meant they had to take up Baugur's rights. CVC and TPG both hold a stake in the business.

Baugur owns 6.5% of Debenhams directly and 6.7% through the Unity investment vehicle, in which it holds a stake of 42.5%. Debenhams' debt is reported to stand at £900m, £100m of which are due to be paid back in May 2009.

Baugur filed for bankruptcy earlier in March 2009 after the Icelandic government refused to extend a moratorium, a part of the country's legal process for creditor protection.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• UK / Ireland
• Consumer