Will Adderley, Dunelm Group Plc’s largest shareholder, has pledged part of his stake in the household goods retailer to secure funding from Banco Santander SA.
The billionaire son of Dunelm’s founders pledged 36 million shares, nearly half of his total stake, through an investment firm to secure a loan facility with the bank, replacing a deal with Barclays Plc, according to UK regulatory documents. The pledged shares are valued at around $ 735 million, based on the closing price of the Leicester, England-based company on Thursday. Adderley, vice chairman of Dunelm, has a total stake of approximately $ 1.5 billion.
A spokesperson for Adderley investment firm WA Capital declined to comment. Santander also declined to comment.
The move allows Adderley, 49, to get money without selling stock, a common technique for founders and executives.
Adderley sold shares of Dunelm worth 192 million pounds ($ 263 million) in February to further diversify his wealth, the first time he has shed shares since 2016, according to the documents filed. He also owns Marlborough Property Co., a private investment company with commercial real estate assets in London and elsewhere.
His father, Bill, founded Dunelm with his wife, Jean, in 1979 when they opened a market stall selling curtains. Adderley was previously CEO of the company and held that position when it went public in London in 2006. Dunelm’s shares have since risen more than eightfold and have risen more than 20% this year.
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