Following the footsteps of JD Sports executive chair Peter Cowgill, SSA Investments, the family office of B&M CEO Simon Arora, sold 40 million shares overnight at a price of 585p. Earlier, Sports executive chair Peter Cowgill surprised the market as he cut his holding in half. Cowgill raised just over £20 million selling 10 million shares. The sale has generated shockwaves through the retail sector.
SSA manages the wealth of CEO Simon Arora and his brothers Bobby and Robin. Simon and Bobby bought the discounting chain in 2004 and have helped turn it from a struggling regional brand into a retail giant. The pair, and brother Robin who sits on the board, have an estimated net worth of £2.5 billion. The overnight share sale raised £234 million for the brothers. The chunk represents 4% of the company’s outstanding stock and leaves the Aroras with 7% of B&M.
The sales will leave many investors wondering if this could be the trend after what has been a bumper Christmas for most. Retailers including both JD and B&M have delivered a slew of profit upgrades over the last fortnight. The sector faces a much more uncertain 2022 as soaring energy costs squeeze household finances.
A slump in retail shares over the last two days has knocked £1.6 billion off the value of the UK listed sector in what most see as profit taking. B&M is likely to fare better than most in any cost of living squeeze given its focus on the discount end of the market.
