DFS shares slide as Advent International cuts stake

DFS shares slid on Friday as US private equity firm Advent International cut its stake in the furniture retailer by half.

Funds managed by Advent sold 25.7m shares, or 12.1% of its stake through an accelerated bookbuild secondary placing to institutional investors, in which Jefferies and UBS acted as bookrunners.

The shares were sold at 240p each, raising gross proceeds of £61.7m.

Settlement of the placing is expected to take place on 8 November, after which Advent will hold 25.7m shares in the company.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "Having floated the business last year, it’s not surprising to see the group’s former owner winding down its position. However, the decision to do so now might suggest it has concerns about the future health of the UK economy."

At 1455 GMT, the shares were down 9.2% to 239.50p.