Betterware placing nets family 31m pounds
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Your support makes all the difference.THE FAMILY behind Betterware, which sells dish mops and clothes pegs from door to door, has crystallised a pounds 50,000 initial investment into pounds 31m, writes Robert Cole.
Andrew Cohen, chief executive, bought the company that was to become Betterware from receivers in 1983, just as Britain emerged from the recession of the early 1980s.
He paid pounds 250,000 for a company that is now worth nearly pounds 320m.
Family and directors yesterday placed one-fifth of their holding - 13.4 million shares - at 230p among institutions. Although this reduced their holding they retain control of the company.
Mr Cohen said he wanted to retain control so that he could sleep easily at night without having to worry about a takeover challenge.
He added that he agreed to dilute the controlling interest only if at least 20 separate institutional investors could be found as replacement owners.
He said the impetus for the placing came from the City. Betterware's remarkable growth record had attracted investors, but sellers were hard to find.
The problem of illiquid trading, common to small companies, was exacerbated by the Cohen family's ownership of such a large chunk of the company.
Mr Cohen said he had not thought out what he was going to do with his cash pile. He does, however, plan to use some of the money to settle tax liabilities and make donations to charity.
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