Shop Direct owners give up £200m dividend to secure refinancing bond

319
£200 million

Shop Direct owners the Barclay brothers have given up a £200 million dividend in order to push through a refinancing operation.

According to The Evening Standard, the reclusive twin brothers, who are estimated to be worth around £7 billion, will launch a bond issue of £550 million today in order to refinance online retail company.

Last week it was revealed that they had sought a £700 million bond issue for Shop Direct to undertake a dividend recapitalisation, expecting to take home a £200 million dividend.

City sources reportedly saw this as too aggressive, forcing the billionaire pair to give up their dividend in order to secure the bond issue, led by Barclays bankers.

Shop Direct, which owns Very.com and Littlewoods, was put up for sale earlier this year receiving a £2.5 billion offer from Hellman & Friedman.

The sales process was scrapped in July after interested parties failed to offer the £3 billion asking price.

Interest in purchasing Shop Direct, dubbed the UK’s second largest online retailer, was also reportedly strained by its reliance on consumer credit, which is likely to come under increased regulation and suffer in the wake of waning consumer confidence.

Click here to sign up to Retail Gazette‘s free daily email newsletter