Carpetright Chair Resigns As Cut-Price Takeover Gets Over Line

(Alliance News) - Carpetright PLC on Thursday said its chair has departed and its shares will be cancelled after a court sanctioned its takeover by Meditor Holdings Ltd.

In November, Carpetright agreed to a takeover offer from Meditor, which valued the UK retailer at about GBP15 million, or 5.00 pence per share. Approximately 80% of shareholders at a meeting last week voted in favour of the resolution to approve the offer.

Carpetright shares were last quoted at 5.04p each.

On October 30, the day before Carpetright said it is was mulling a potential bid from Meditor, its shares closed at 9.12p.

Shares in the floor coverings seller are now suspended, and will be cancelled effective Friday.

As a result of the takeover from Meditor getting over the line, four non-executives, including Chair Bob Ivell, have stepped down from Carpetright's board.

Ivell, Jemima Bird, Pauline Best and David Clifford, all gave their resignations and have departed the board, effective Thursday.

Ivell in October backed the Meditor bid.

He said: "We believe the Meditor offer is in the best interests of all stakeholders. While we have made significant progress with our recovery plan for the Carpetright group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market.

"With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business."

By Eric Cunha; ericcunha@alliancenews.com

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