Vikings capture £55m Mk One
ICELANDIC investment group Baugur has further expanded its UK retail empire with the £55m purchase of low-price fashion chain Mk One.
The deal hands £44m in cash to Mk One's three equity owners. Elaine McPherson and David Thompson will share £39.6m while billionaire Philip Green can add another £4m to his pile.
Baugur will hold 46% of the new company, Icelandic bank Landsbanki 36% and the management team led by chief executive Les Johnston and finance director Andy Hall will sit on the remainder of the equity.
More than 50 new branches will be added to Mk One's 176-store chain in the next two to three years. Management believes there is potential for up to 400 sites because the value sector of the UK fashion market is growing three times faster than the rest of the clothing market.
Meanwhile, Baugur is still deciding whether to slash its proposed 110p-a-share offer for Big Food Group to below 100p.
A deal has been reached with BFG's pension trustees but any offer could still be weeks away.
