Marks & Spencer Investors Give Thumbs-Down to Ocado Partnership
- M&S to raise as much as 600 million pounds in rights issue
- Retailer to supplant Waitrose as Ocado’s main grocery supplier
Photographer: Chris Ratcliffe/Bloomberg
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Marks & Spencer Group Plc fell the most in two and a half years after the retailer said it will finance a nearly $1 billion investment in online retailer Ocado Group Plc with new shares and cut its dividend.
M&S plans to offer as much as 600 million pounds ($797 million) in new stock to help pay 750 million pounds for a 50 percent stake in the partnership, diluting existing investments. Its shares fell as much as 10 percent, the most since June 2016, while Ocado rose as much as 6 percent.