Matalan - HQ sold as guaranteed
All,
Please refer to our unchanged analysis here.
As discussed all along, the natural buyer of the HQ was always going to be John Hargreaves as this should relieve him from the guarantee to make a further equity injection in case it is not sold.
The £25m proceeds have been applied to the £75m RCFs as per agreement. None of it, however, sheds additional light on the company’s current business and liquidity situation.
We remain long this name in the SSNs from pre-corona times for 5% of nav despite its deeply unpopular sector on the basis that Matalan should see countercyclical stability as consumer confidence is suffering from the virus and Brexit at the same time, while experiencing only limited online migration in its discount segment and benefiting from its more demanded out-of-town locations.
Please reach out to discuss,
Wolfgang
________________
E: wfelix@sarria.co.uk
T: +44 203 744 7003