// McColl’s mulls equity raise to boost expansion of its partnership with Morrisons
// McColl’s CEO Jonathan Miller is investing a seven figure sum in McColl’s shares as part of the fundraising
McColl’s is reportedly considering an equity raise to accelerate the expansion of its partnership with Big 4 grocer Morrisons.
The convenience store retailer is preparing for a £30 million equity raise to drive the expansion of its Morrisons Daily store format, Sky News reported.
McColl’s, which operates a 1200-strong store network and is a wholesale partner of Morrisons, is currently converting hundreds of its sites to Morrisons Daily formats.
McColl’s chief executive Jonathan Miller is investing a seven figure sum in McColl’s shares as part of the fundraising.
The convenience store group has confirmed the speculations and said it is “currently exploring options relating to a potential capital raise to increase the number of its Morrisons Daily store conversions, accelerate the pace of roll-out of its Morrisons Daily store conversion programme, and strengthen its balance sheet”.
If it were to launch a bid to raise as much as £30 million in fresh equity, which is also the same amount as its current £40 million market capitalisation, McColl’s would need to hold a shareholder vote to approve it.
McColl’s, which extended its partnership with Morrisons for a further three years until 2027 in February, said that “no final decisions have been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise”.