The HMV Group, which owns Waterstones, Britain's biggest book chain, plans a public offering for its companies on the London Stock Exchange at the beginning of May.
With a price of 190p—220p per share, Waterstones is valued at approximately £834 million, just short of the £1 billion target HMV set for itself. Staff at Waterstones will each receive up to £200 worth of free shares. The public offering will generate funds to reduce debt and allow further expansion in HMV's core retail activity—music, videos and DVDs—into the Japanese and other international markets.
Waterstone's most recent trading figures give rise to cautious optimism. In the 13 weeks ended January 26, 2002, like for like sales were up 5.2% and sales increased to £141 million. However, over the longer period, the picture is not so rosy. In the 39 weeks, like for like sales rose only 3.5%, with sales up to £323.1 million from £316.1 million last year.
