UK: Iceland mull sale and leaseback option for raising cash
UK frozen-food retailer Iceland Group is mulling a sale-and-lease-back deal on 750 outlets in its national property portfolio in a bid to raise more cash.
The proposal, which could unlock between £300m (US$426.64m) and £400m from its balance sheet, is just one of the cash-strapped chain's options included in its financial strategy review.
The money will go towards the company's three-year expansion plan to open 80 new outlets, and serve to allay the fears of institutional investors that they risk being called upon to provide £200m of new equity through a deeply discounted rights issue.
Fears of a rights issue have lingered since the beginning of last year, when the chain hit troubled sales waters and saw its stock price fall. Earlier this month, however, Iceland denied reports that it had not found support for such an issue to raise cash.
Iceland has appointed accountant Ernst & Young to examine the fund-raising options on its property portfolio.
CEO Bill Grimsey insisted yesterday however that, "the details about the refinancing of Iceland will not be discussed until the end of February."
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Quorn CEO sets out stall for 2017 - interview
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti