HMC Capital picks up 10% in retailer Baby Bunting
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The news: Investment manager HMC Capital has picked up a substantial stake in Baby Bunting following a slide in the retailer's shares after a profit warning last week.
The numbers: HMC said it had picked up a 10.29% stake in the company. It has built up shares since March, but the bulk of its holding was acquired last week following a 22% slide in Baby Bunting shares on 8 May, according to its ASX filing late on Friday.
The stock is down more than 31% over the last 12 months and closed at $1.44 on Friday.
The context: Baby Bunting last week reported worse-than-expected sales and warned its customers were facing widespread cost-of-living pressures. The stock has performed poorly since being listed in 2015.
HMC’s stake buy is likely to rank it as the second-largest shareholder in the company, behind Australian Super. ASX-listed HMC Capital also holds large stakes in other listed companies including property developer Lendlease, agribusiness GrainCorp and pharmacy wholesaler Sigma Healthcare, which is set to merge with retail chain Chemist Warehouse.
The source: ASX announcement
