Carlyle to take control of Very Group from Barclay family - report

(Sharecast News) - US investment firm Carlyle is reportedly preparing to take control of online retailer Very Group in a deal that will end the Barclay family's long tenure at another major UK company. According to Sky News, Carlyle - the biggest lender to Very Group's immediate parent company - could assume ownership of the retailer as soon as October under the terms of its financing arrangements.

Sources told Sky on Friday that Carlyle was expected to hold further talks in the coming weeks with fellow creditors including IMI, the Abu Dhabi-based vehicle which assumed part of Very Group's debts in a complex deal related to ownership of the Telegraph newspaper titles.

Sources said Carlyle will probably end up holding a majority stake in Very Group once it exercises a 'step-in right' which effectively converts its debt into equity ownership.

Very Group borrowed a further £600m from Mayfair-based fund Arini this year as it sought to stave off a cash crunch and buy itself breathing space.

Sky said precise details of the company's capital and ownership structure will be thrashed out before the change of control rights are triggered at the beginning of October.

The Barclay family drew up plans to hire bankers to run an auction of Very Group earlier this year, but a process was never formally launched.

It was understood that Carlyle, which declined to comment to Sky, may hold onto the business for a further period before looking to offload it.

IMI is also likely to end up with an equity stake or a preferred position in the recapitalised company's debt structure, sources told Sky.

Very Group has around 4.5 million customers.