The UK-based B&M Bargains, owned by Indian-origin Arora family, has redistributed their shareholdings to hand over youngest brother Robin Arora a £56mn slice of the £3.7 billion company. Simon Arora, 49, chief executive, and Bobby Arora, 47, trading director, hold 15 per cent of the discount retailer through their Luxembourg based SSA Investments vehicle. A statement to the stock exchange revealed that the two brothers have sold a 20 per cent stake in SSA to Robin, a B&M director. Robin sold almost all his initial 9.4 per cent stake for £228 million in its stock market listing five years ago.
The Aroras, whose father ran a cash and carry business in Manchester, took over loss making B&M in 2005. The business was founded by Malcolm Billington in Blackpool in 1976. Today, there are more than 500 B&M stores selling home wares and food at rock-bottom rates. Former Tesco boss Sir Terry Leahy is chairman and the group owns the Jawoll chain in Europe as well as hundreds of UK outlets.
Being UK’s fastest growing retailers, the company helps consumers seeking a cheaper alternative to mainstream supermarkets, health and beauty shops or department stores. In 2017 sales soared by nearly 20% to £2.4bn as the company opened new stores every week in the UK and 19 in Germany. Pretax profits rose 18% to £183mn. B&M’s share price has risen by a third since the company floated on the London Stock Exchange three years ago. Their SSA investment vehicle is still B&M’s largest shareholder and the statement said the Aroras were “committed to participating in B&M’s exciting future growth prospects.”