LONDON Nov 6 British discount retailer
Poundland is moving ahead with plans for a London share sale,
picking investment banks Credit Suisse and JP Morgan
to advise it, two people familiar with the matter said
The company, majority owned by private equity group Warburg
Pincus, is in the process of appointing the banks and is
expected to be valued at between 700 million pounds and 800
million pounds ($1.1 billion to $1.3 billion), the people said.
Last month sources said Poundland, Britain's largest
single-price discount retailer, was considering a stock market
flotation in the first half of next year.
Warburg Pincus owns 76 percent of the company, with the
balance owned by the retailer's management, led by chief
executive Jim McCarthy, a 30-year veteran of the retail sector.
Discount retailers have outperformed the market in the
economic downturn as consumers, battling inflation rising faster
than wages, have sought to make savings.
The group made underlying earnings before interest, tax,
depreciation and amortisation (EBITDA) of 45.4 million pounds in
the year to March 31, up from 39.3 million.
Poundland, Warburg Pincus, Credit Suisse and JP Morgan
declined to comment.