Brunner to subscribe to Art Holdings

Boundary Capital, today announces that Brunner Limited, a vehicle in which Boundary is the majority shareholder, has agreed to subscribe €65m for approximately 45% of the equity in Art Holdings, a new holding company that will acquire 100% of the activities of the Arnotts Department Store group.

Boundary Capital, today announces that Brunner Limited, a vehicle in which Boundary is the majority shareholder, has agreed to subscribe €65m for approximately 45% of the equity in Art Holdings Limited, a new holding company that will acquire 100% of the activities of the Arnotts Department Store group.

On completion of the Subscription, which is expected to take place within the next 6 weeks, Boundary will invest €40m for an indirect stake of 28% in Arnotts; Anglo Irish Private Bank will co-invest €25m with Boundary. Boundary Management Limited will manage the combined shareholdings in Brunner on behalf of Boundary and Anglo.

The Subscription will be treated as an investment in the accounts of Boundary Capital and will therefore not be consolidated.

Boundary Capital will fund its portion of the subscription from its own resources using €11m cash and the balance €29m from a loan facility.