Mothercare has received acceptances for roughly 95% of its rights issue, which will help turn around its UK business.
Mothercare said today (October 27) that out of the 79.94 million shares from the rights issue, over 75.6 million shares were taken up.
Earlier this month, Mothercare said its shareholders had approved its discounted £100m rights issue – nine-for-10 offer at 125 pence per share. Mothercare shares closed Friday at 1790.00p.
Mothercare will use around £25m of the rights issue proceeds for store closures, £20m for its store refurbishment programme, £10m invested in digital systems and infrastructure, and £40m to repay its existing term loan.
Mark Newton-Jones chief executive of Mothercare said: “The successful completion of our rights issue today creates a strong financial position that now allows us to modernise our business and fulfil our ambition to be the leading global retailer for parents and young children.”