Monsoon signals stock market exit
Offer for shares by founder’s family trust
July 3 2003
Fashion retailer Monsoon may exit the stock market though a complex share offer made by the family trust set up by the founder of the business, Peter Simon.
Stoneycroft Ltd is offering to buy 20 per cent of Monsoon shares to add to the 9.2 per cent it already holds. Stoneycroft is selling sell put options for Monsoon shares at 10p per option. The price is fixed at 140p for 21 days, and the options can be sold as any stage over the next three months.
If successful, the offer would result in the combined holdings of Stoneycroft, the Stoneycroft Trust, Beauchamp – a company owned by another Simon family trust – and Simon himself reaching 92.5 per cent of the total shares in Monsoon. Under City rules, all are deemed to be acting together.
The remaining stake in Monsoon would to small for a continued Stock Market listing, with Monsoon proposing to maintain a quoted price by transferring to the Alternative Investment Market.
Richard Green, on behalf of the board of Stoneycroft said: “We believe that the proposed offer structure being announced today grants choice to Monsoon shareholders. Such genuine choice, incorporating both upside as well as downside protection, is not always available to shareholders, particularly private investors in smaller companies.”
A statement by Monsoon said: “As this is not a formal offer for the company, the board of Monsoon does not intend to make a formal recommendation on the range of options offered to shareholders by Stoneycroft. However, the Board of Monsoon advises shareholders to give careful consideration to documentation sent to them by Stoneycroft and also to consider consulting a financial adviser in respect of their holding in Monsoon.”
Monsoon operates the Monsoon and Accessorize chains. Simon, now chairman, founded the business in 1972.
