Bankers preparing £5bn debt deal for Morrisons sale

LENDERS are preparing debt financing packages worth around £5bn to support a possible sale of the supermarket chain Wm Morrison to private equity funds, banking sources have told Reuters.

The Morrisons family, which own a 9.5% stake, has approached buyout firms to guage their interest in taking the business private after a difficult Christmas trading period.

In January, the retailer issued a profit warning and has struggled to keep up with its competitors because of previously operating without an online offering.

“The size of the transaction, which could get as high as £10bn, could require a number of private equity players to team up, given the size of the equity cheque needed,” a senior leveraged loan banker told Reuters.

Morrisons declined to comment.