Founders of online fashion giant cash in £140m worth of shares
The founders of online retail giant Boohoo have netted £140m after selling of a chunk of their shares in the business.
Zeus Capital and Jefferies International were advised by Mahmud Kamani and Carol Kane that they intended to sell up to 35,000,000 and 15,000,000 ordinary shares respectively in Boohoo group via an accelerated bookbuild placing to institutional investors. Mahmud
Kamani is the group co-founder and group executive chairman of Boohoo and Carol Kane is co-founder and an executive director.
The duo have, subject to completion, sold 50,000,000 ordinary shares in the Company representing approximately 4.3 per cent. of the issued share capital of boohoo.
The shares were placed at a price of 285 pence per share and were sold to institutional investors in a placing managed by Zeus Capital and Jefferies acting as joint bookrunners.
Following the Placing, the duo still hold 184,010,301 ordinary shares in the company, representing approximately 15.8 per cent. of the company’s issued share capital.
At current market levels the duo are worth a staggering £5.4bn.
The founders of Boohoo have agreed that they will not, without the company’s and joint global co-ordinators’ prior written consent, dispose of further ordinary shares in the Company for a period of 18 months.
Boohoo is one of Manchester’s biggest success stories in recent years.
Mahmud Kamani, 55, and Carol Kane, 53, launched the business in 2006 and supplied clothes to high street retailers before selling direct to customers.
Boohoo reported a record performance over the Black Friday weekend and said trading since half-year end on August 31 remained “strong” across key brands. The company added that its continues to trade “comfortably” in line with market expectations.
The team at Zeus Capital was led by Nick Cowles and Andrew Jones who handle corporate finance in the Manchester office and John Goold and Benjamin Robertson who look after corporate broking in London.
The Manchester corporate team at Addleshaw Goddard, comprising Roger Hart and Lucie Alker, advised Zeus Capital on the placing of shares.
