UK's Carpetright in takeover talks with biggest investor Meditor
LONDON, Oct 31 (Reuters) - Struggling British floor coverings retailer Carpetright is in talks with Meditor, its largest shareholder, regarding a possible takeover offer at a price below its current market value.
Carpetright said on Thursday that Meditor, which holds just under 30% of its equity, has indicated an offer price of 5 pence per share in cash. Shares in Carpetright closed Wednesday at 9.12 pence, valuing the business at 27.6 million pounds ($35.7 million).
The firm said it needed 80 million pounds to repay debt facilities, meet ongoing working capital requirements and provide capital to execute its strategy.
It said that having explored various long-term financing solutions it had entered into the talks with Meditor.
($1 = 0.7728 pounds) (Reporting by James Davey; editing by Kate Holton)