UK homeware retailer Dunelm’s top shareholder, Will Adderley, and his private investment firm have sold a 4.9% stake in the company to institutional investors.
Bookrunner Barclays announced today that the sale was made for £11.4 million.
Shares in the retailer were down by up to 7.4% in early trade as the stake sale in placement priced at 11,140 pence represented a 7.7% discount to Dunelm’s close on Monday.
Adderley and his family, along with his investment firm WA Capital, will now own about 37.9% of the retailer, remaining the top shareholder.
WA Capital is a holding company controlled by Adderley and his wife Nadine Adderley.
Will Adderley, who is currently Dunelm’s deputy chairman, previously served as CEO in 1996 and spearheaded the company’s 2006 IPO on the London Stock Exchange.
Dunelm, a retailer of various items including bedding, sofas, chairs and garden furniture, has been trying to increase its market share in a difficult consumer environment by expanding its product range.
Its shares, which have gained more than 16% this year, were down 7% in early trading.
The sector continues to face uncertainty about the timing of recovery as budget-conscious customers remain cautious about making significant purchases.
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