CCC SA has changed plans for an upcoming share sale to broaden the offering to investors other than just its founder Dariusz Milek.
(Bloomberg) —
CCC SA has changed plans for an upcoming share sale to broaden the offering to investors other than just its founder Dariusz Milek.
Shareholders in the Polish fashion retailer will on Nov.
17 vote on a new proposal to sell as many as 14 million shares to Milek and other selected investors. CCC will seek to sell the shares at 36.11 zloty ($7.45) apiece, an average price from the last two weeks.
The Polkowice-based retailer previously planned to raise 500 million zloty from Milek alone.
While selected investors will now be offered as many as 9.64 million of the shares on offer, Milek remains ready to buy them all if necessary.
The change reflects “expectations of broader group of shareholders,” the company said in a draft resolution of the November meeting.
CCC is facing a growing debt burden after years of spending on expanding into e-commerce and new brands.
Its business, which operates in 28 countries, is also recovering from the impact of lockdowns during the Covid-19 pandemic. The retailer’s net debt stood at 1.8 billion zloty at the end of the year.
Earlier this month, CCC reached an agreement with banks to change covenants on loans signed in 2021.
It’s scheduled to meet with bondholders next week to seek agreement for no testing of bond covenants.
The company has said other funding options, including an initial public offering of e-commerce unit Modivo SA, remain difficult amid challenging conditions in the s.
Read more: Polish Bond Selloff Makes Equity Investors Even Pickier
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