Currys to sell Kotsovolos
Currys is to sell its entire business in Greece and Cyprus to Public Power Corporation for £175 million.
The move follows a strategic review of the business earlier this year.
The sale of Dixons South East Europe, which trades as Kotsovolos, will enable Currys to simplify its group structure, strengthen its balance sheet, and focus more on its larger markets of the UK, Ireland and the Nordics.
Net cash proceeds of the disposal are expected to be approximately £156 million at completion, after taking into account transaction and separation costs, intercompany balances and cash in the business.
Currys will use the funds to cut net debt and, at a later date, to reduce its pension fund’s accounting net deficit and required future contributions. The company will also explore the potential to return any surplus capital to shareholders.
Subject to approval by shareholders, the disposal is expected to complete in the first quarter of 2024.
Alex Baldock, Currys chief executive, said: “This proposed sale of Kotsovolos is an excellent outcome for Currys and for our shareholders.
“It recognises Kotsovolos’s value and accelerates its realisation. As a Group, we’re focused on maintaining our encouraging momentum in the UK & I and getting the Nordics back on track; this disposal will further strengthen the foundations on which we do both.”
According to Curry’s website, Kotsovolos has over 3,000 colleagues working in its online operations and across 96 stores.
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