LONDON (Alliance News) - Marwyn Management Partners PLC Thursday outlined plans to raise up to to GBP12.2 million as it looks to fund capital requirements with a view toward changes at main subsidiary Le Chameau SAS.
Marwyn Management Partners also detailed its intention to up its stake in Le Chameau beyond the current 84.5% level.
Following the appointment at Le Chameau of Beverley Williams as president and chief executive, Cecile Williot as chief financial officer, and Stephane Ziegler as operations director, Le Chameau is eyeing a plan based on three main points: investing in growth, implementing a revamped sales strategy, and investing in the brand.
Founded in 1927, Le Chameau is known for its premium rubber boots, famous for having been worn by the Duke and Duchess of Cambridge.
"The directors believe that management must implement each part of the plan concurrently as the parts are inter-dependent," Marwyn Management Partners said.
"To fund the capital requirements of the strategy set out above, the increased working capital needs of the business, MMP proposes to raise up to GBP10.0 million, by way of an issue of ordinary shares in the company at a price of 4.125 pence," the company said.
"The company may also raise up to a further GBP2.2 million on the same basis to increase its interest in Le Chameau through purchasing existing shares and loan notes in its subsidiaries," it said.
Marwyn Management Partners also said it is in advanced discussions for its largest shareholder, Marwyn Value Investors LP, to underwrite the entire placing. The underwriting agreement would be subject to shareholder approval.
Marwyn Management Partners noted that Le Chameau's revenue is expected to be down on the previous year, citing "challenging" trading conditions in France, which accounts for about 55% of its sales.
Marwyn Management shares were untraded on Thursday at 4.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.