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Barclay brothers set to sell a stake in Shop Direct Barclay brothers set to sell a stake in Shop Direct
(about 2 hours later)
The billionaire Barclay twins are considering selling a stake in their retail business Shop Direct.The billionaire Barclay twins are considering selling a stake in their retail business Shop Direct.
The brothers, who also own the Daily Telegraph and a string of hotels including the Ritz in London, are understood to be looking at selling as much as a quarter of their interest in Shop Direct, which owns the Littlewoods and Very.co.uk online retailers.The brothers, who also own the Daily Telegraph and a string of hotels including the Ritz in London, are understood to be looking at selling as much as a quarter of their interest in Shop Direct, which owns the Littlewoods and Very.co.uk online retailers.
The deal could value Shop Direct at more than £2bn according to Sky News, which first reported the potential sale.The deal could value Shop Direct at more than £2bn according to Sky News, which first reported the potential sale.
Sources told the Guardian Sir David and Sir Frederick Barclay had been in talks to sell a 25% stake in Shop Direct last year and were keen to capitalise on the business’s return to profitability. Sources told the Guardian that Sir David and Sir Frederick Barclay had been in talks to sell a 25% stake in Shop Direct last year and were keen to capitalise on the business’s return to profitability.
Profits rose 78% to £71.7m in the year to June 2015, it’s third consecutive year of profits after years of losses. The business is understood to be on track for another profits lift this year. Profits rose 78% to £71.7m in the year to June 2015, its third consecutive year of profits after years of losses. The business is understood to be on track for another profits lift this year.
“They are not going to sell the Telegraph or the hotels, those are both iconic businesses, but Shop Direct is not a long-term hold. The turnaround is pretty well done and they could get some value off the table,” said one well-placed source.“They are not going to sell the Telegraph or the hotels, those are both iconic businesses, but Shop Direct is not a long-term hold. The turnaround is pretty well done and they could get some value off the table,” said one well-placed source.
Selling a stake in Shop Direct would be a highly unusual move for the Barclays who own all of their businesses outright. Floating part of the business on the stock market could be a possibility, but City sources said such a move was unlikely given the Barclays’ love of privacy.Selling a stake in Shop Direct would be a highly unusual move for the Barclays who own all of their businesses outright. Floating part of the business on the stock market could be a possibility, but City sources said such a move was unlikely given the Barclays’ love of privacy.
The company declined to comment.The company declined to comment.