The Convenience Shop (Holding) plc

Issuer Profile

The Convenience Shop’s humble beginnings were marked by the very first outlet that opened its doors in Zebbug back in 2009. By 2018, the brand became a household name in the local mini market industry, regarded by many locals as the ultimate one-stop-shop for their daily needs. With over 50 outlets strategically spread across 40 localities, extended opening hours in comparison to other convenience stores and a workforce of over 400 employees, the brand is known for offering a vast product choice and a pleasant shopping experience under one roof.
To date the current shop count stands at 28 owned stores and 30 franchises all operating under The Convenience Shop brand.

Since issuing the bond, we the Convenience Group has continued to implement our strategic vision to become Malta’s top food retailer, opening six new outlets in 2020 and reaching our 70th shop, we are offering a new online service with express delivery within 2 hours.

€5 million 5% Unsecured Callable Bonds 2026-2029 of a nominal value of €100 per Bond issued at par by The Convenience Shop (Holding) p.l.c. and operated by the Malta Stock Exchange.

Ivan Calleja
Director

Issuer Need

Ownership instituted a buy-out programme of minority third party interests in parts of the operation. This also entailed the repayment of shareholders’ loans who reduced their shareholding in the new Group as a result of the restructuring.

Simultaneously the Group wanted to continue its investment in existing stores as well as expand its presence locally. This was considered necessary given that the convenience and mini market industry is a highly competitive one as numerous traditional grocery stores, typically family owned, can be found in practically every locality across the Maltese Islands. This competition has become tougher with the advent of high street supermarkets and supermarket chains in recent years.

Solution

Calamatta Cuschieri structured a €5 million bond issue, listed on Prospects MTF market, which bond was fully subscribed. The Issuer utilised bond proceeds to:

• finance current and future openings of new stores, including restructuring and fit out costs
•  acquire minority stakes held by third parties in owned shops operations and
• repay shareholders’ loans who  reduced their effective shareholding in the new Group due to the restructuring that included buying out minority shareholders.