McColl’s considers fresh equity raise to drive Morrisons c-store expansion

McColl’s is reportedly readying for a £30m equity raise, as first reported by Sky News.

The convenience store group, which operates a 1200-strong store network and is a wholesale partner of Morrisons, is currently converting hundreds of its sites to Morrisons Daily formats, and fresh capital is earmarked to drive the pace of this expansion.

McColl’s chief executive Jonathan Miller is understood to be investing a seven figure sum in McColl’s shares as part of the fundraising.

The convenience store group has confirmed the speculations and said it is “currently exploring options relating to a potential capital raise to increase the number of its Morrisons Daily store conversions, accelerate the pace of roll-out of its Morrisons Daily store conversion programme, and strengthen its balance sheet.”

If it were to launch a bid to raise as much as £30m in fresh equity, which is also the same amount as its current £40m market capitalisation, McColl’s would need to hold a shareholder vote to approve it.

The grocery chain, which extended its partnership with Morrisons for a further three years until 2027 in February, said that “no final decisions have been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise.”