The private equity backers of B&M Bargains (BME) has sold its remaining 5% stake in the discount chain for £200m, cashing in on a bumper Christmas for the business.

Clayton, Dubilier & Rice (CD&R), which has been an investor in B&M since 2012, sold its remaining 4.9% stake in the retailer – just more than 49 million shares – for 407p a share, raising £199.8m in proceeds, according to a statement to the stock exchange today.

It comes after B&M revealed on Friday that its sales jumped 22.9% jump to £969.8m in the 13 weeks to 23 December, with UK sales up 12.9% to £837.3m, as discounters, including Aldi and Lidl, emerged as the big retail winners over Christmas.

“Following settlement of the placing, which is expected to take place on 16 January 2018, CD&R will no longer own any of B&M’s ordinary shares,” the statement today said.

CD&R is reported to have paid B&M founders, the Aroras brother, more than £500m for a 60% stake in the group back in 2012.

A listing on the London Stock Exchange two years later provided a £1bn payday for the Aroras and CD&R, with the retailer floating at 270p a share and a valuation of £2.7bn.

CD&R sold another £384m worth of shares in February 2015 and a further £227m in June last year to take its stake down to 4.9%.

Shares in B&M rose a further 5% on Friday on the back of the festive boost to 417p, with the company now valued at £4.2bn.

The Aroras remain the largest shareholders in B&M, with a 15% stake in the group.

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