Mothercare In Talks To Buy 25% Of Australian Franchisee

16th Jul 2010 07:17

LONDON (Dow Jones)--Parenting and children's products retailer Mothercare PLC (MTC.LN) said Friday it is in talks to buy a 25% stake in the company which runs the Mothercare and Early Learning Centre franchises in Australia and New Zealand. The firm said the investment in Headline Group Ltd. will be made through convertible loan notes with a value of A$12.2 million, or about GBP7.2 million, which will convert to shares in Headline subject to the approval of its shareholders. Mothercare said the capital will provide Headline with increased resources to accelerate the nationwide expansion of the Mothercare and Early Learning Centre brands in Australia and New Zealand. The investment is subject to due diligence and agreement of final documentation, Mothercare said. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] (END) Dow Jones Newswires July 16, 2010 02:17 ET (06:17 GMT)