By Michael Susin
Kelso Group Holdings said it has acquired 3.2% of the share capital of retailer TheWorks.co.uk for 626,000 pounds ($766,287).
The U.K. investment company–previously Insight Business Support–said Monday that it has bought 2 million shares at an average price of 31.3 pence. This represents a discount of 12% from Friday’s closing price of 35.6 pence.
The company said that TheWorks has a strong business proposition, with focus on affordability and that the valuation is highly attractive.
“We are very excited about our new investment and helping restore the intrinsic valuation of The Works which we believe is significantly higher than the current price,” it added.
TheWorks reported an adjusted pretax profit–which strips out exceptional and other one-off items–of GBP10.1 million for fiscal 2023 ended Aug. 30 and revenue of GBP280.1 million, it added.
Kelso shares at 0718 GMT were flat at 2.15 pence.
TheWorks shares were up 3.4 pence, or 9.55%, at 39.0 pence.
Write to Michael Susin at [email protected]
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