Kirkham adds pounds 74m to fortune with DFS sale
Friday 27 October 1995
Mr Kirkham flagged the placing a week ago, when the company reported record profits for the year to July, but the scale of the share sale was larger than expected. He had been expected to raise about pounds 60m from the sale of a third of his 48 per cent holding in DFS.
He said: "Since the flotation of DFS, I have had numerous approaches from shareholders and potential new investors asking whether I and my family would sell further shares. I remain as executive chairman and my commitment to the company is as strong as it ever has been."
Last week he assured investors that he had no intention of diluting his interest in the company by spending his money on other business ventures.
The share sale, which allowed existing investors to boost their holdings and also brought new shareholders onto the register, means Mr Kirkham has now taken more than pounds 200m out of the business since floating DFS in 1993. He and family trusts still hold a 30 per cent stake, worth more than pounds 100m.
Strong demand for the shares allowed broker NatWest Wood Mackenzie to place the shares at 328p, a discount of only 2 per cent toWednesday's closing price of 335p. News of the deal pushed the shares 11p higher yesterday to 346p.
Mr Kirkham said the placing was larger than forecast because of the strong demand from institutions frustrated at their inability to buy into the company, which has shrugged off the stagnant housing market to produce strong profits growth.
Last week DFS announced a special dividend of 10p a share, in addition to a 15 per cent rise in the ordinary payout to 8.3p, as a way of reducing the company's fast growing cash pile.
Mr Kirkham has undertaken to sell no more shares for at least 12 months without the consent of Schroders, which underwrote the latest placing.
The son of a Yorkshire miner, who left school without any O levels, Mr Kirkham has become a serious art collector since joining the ranks of British richest people.
He celebrated DFS's flotation by buying a Gainsborough painting, Peasants going to market. He said that he felt it was appropriate.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...