A consortium of financial investors are reportedly closing in on finalizing a deal to takeover British budget retailer Matalan as they look to cement their short-term future, according to a report from Sky News.
The group if financial investors includes the likes of Invesco and Man GLG and could inject close to £100m of new funding into Matalan. The lenders are currently in talks with Nigel Oddy, the chain’s interim chief executive, about the possibility of making the role permanent if they succeed in their takeover.
Ahead of Christmas, Matalan issued an update on the sale process which confirmed it had received bids from several parties saying – “The company is currently assessing all the bids and constructive discussions are continuing with interested parties and their advisers.”
“In addition, the ad hoc group of existing First Lien Noteholders represented by Invesco, Man GLG, Napier Park and Tresidor, which now holds over 70% of the First Lien Secured Notes, has reconfirmed its commitment to a recapitalization if necessary.”
“All transactions under consideration provide for a material reduction of Matalan’s debt including the First Lien Secured debt, an extended debt maturity profile and any new funding that may be required,” it said on December 22.
“The stable and sustainable balance sheet will put the company in a position of financial strength, allowing it to execute on its business plan and deliver its growth strategy.”
