The Arora family, founders of the B&M Bargains retail chain, and its former private equity owners have sold a further 12% of B&M European Value Retail (BME) for over £400m.

The family and US buyout group Clayton, Dubilier & Rice sold 120 million ordinary shares for 340p each, raising a total of £408m.

Following the sale, CD&R retains approximately 11% of B&M, while the Arora family’s investment group SSA Investments continues to hold (both directly and indirectly) approximately 21% of the issued share capital of the company.

B&M did not receive any proceeds from the placing.

B&M said in a statement: “Simon and Bobby Arora remain fully committed to the business and are confident in the outlook for B&M both in the UK and internationally.

“SSA Investments’ participation in the transaction will provide further liquidity in B&M, and the proceeds from the sale will be used to diversify the Aroras’ investment portfolio. SSA Investments remains B&M’s largest shareholder and is committed to participating in B&M’s exciting future growth prospects.”

It added: “CD&R reiterates its support and confidence in B&M’s management team to successfully implement the company’s growth strategy.”

B&M listed in June 2014 at 270p, netting £1bn for the Arora family and the retailer’s private equity owners. CD&R owned 60% of B&M before the IPO after taking a majority stake in December 2012.

Merrill Lynch, Goldman Sachs and Numis Securities acted as joint bookrunners in connection with the placing, while Lazard & Co acted as financial adviser to CD&R and SSA Investments.

B&M shares were down 2.4% to 344.5p this morning.

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