Morrisons partner McColl’s in talks over £30m cash call
A major UK convenience store group is in talks over a £30m cash call in a bid to accelerate its partnership with supermarket chain Morrisons.
McColl’s Retail Group has reportedly started talks with institutional investors about the £30m injection, which would almost match the group’s current £40m market capitalisation.
City sources told Sky News that McColl’s chief executive Jonathan Miller is set to invest at least £1m himself as a part of the fundraising effort.
The size of the cash call relative to its market capitalisation means that it will need to seek shareholder approval and it is expected the public company will make an official announcement next week.
McColl’s trades from 1200 convenience stores and newsagents across the UK and has a wholesale supply deal with Morrisons.
The LSE-listed company is converting hundreds of its sites to be Morrisons branded as a part of the partnership, which lasts until 2027.
The company’s management said recently that it was not affected by the current bidding war for Morrisons, which has recently seen an enhanced £6.7bn bid by private equity giant Fortress.
McColl’s is not commenting on today’s reports.