The Arora brothers behind B&M bargains are set for a £2bn payout in 18 months, as the value chain prepares to float this week.
The retailer is expected to be valued at around £2.5bn, which gives the Aroras’ 40% stake a £1bn valuation, adding to the £1bn they have already secured from offloading 60% of the company to private equity firm Clayton, Dubilier & Rice in 2012.
Simon, Bobby and Robin Arora are expected to formally unveil their plans to take B&M Retail, which trades as B&M Bargains, public this week. The retailer has 370 high street stores and counts former Tesco boss Sir Terry Leahy as its chairman.
The float is likely to be followed by that of sofa retailer DFS. Advent International, the private equity firm which owns DFS, is understood to have appointed UBS to study the furniture giant’s options with a £1bn float most likely.