Investment in Australian Fran

RNS Number : 4400P

Mothercare PLC

16 July 2010

 



16th July 2010

Investment in Australian Franchisee

Mothercare plc announces that it is in discussions to acquire a 25% stake in Headline Group Limited ("Headline"), which operates the Mothercare and Early Learning Centre franchises in Australia and New Zealand.  This investment is subject to due diligence and agreement of final documentation. 

The investment will be made by way of convertible loan notes with a value of Aus$12.2M (approximately £7.2M), which will convert to shares in Headline subject to approval of its shareholders.  The capital will provide Headline with increased resources to accelerate the nationwide expansion of the Mothercare and Early Learning Centre brands in Australia and New Zealand.

Headline Group Limited has today made an announcement on the Australian stock exchange: http://www.headlinegroup.com.au/shareholders.html

Enquiries to:

Mothercare plc

Tim Ashby, Group General Counsel	01923 206177
Joanne Russell, Head of Investor Relations	01923 694900

Brunswick Group

Anita Scott/Catriona McDermott

020 7404 5959

 

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