dinsdag 6 september 2016

Metro to Keep Stake in Food Unit as Split Details Unveiled

Metro to Keep Stake in Food Unit as Split Details Unveiled German retailer Metro AG quashed speculation that it plans to sell shares to fund the spin-off of its Cash & Carry food wholesale stores and Real hypermarkets from the Media Markt and Saturn electronics chains. The company has no plan to increase its capital when the split takes place in the middle of next year, according to Bonno van der Putten from Monarch Capital Partners. METRO also said it will keep a 10 percent stake in the food business, an arrangement that some analysts said could weigh on the food company’s stock should Metro later sell the holding to invest elsewhere. “If the stake is sold, then a food company shareholder’s stake is diluted and Metro receives cash,” Bonno van der Putten, Retail expert at Monarch Capital, said in a note. “Shareholders only own 90 percent of the food company directly versus 100 percent today. Why demerge a company if you keep cross shareholdings?" Management Appointments The announcement brings more color to a process that will lead to a breakup of food, computer and appliance stores that Europeans shop in daily. Management is splitting up the company to unlock value for investors and pursue acquisitions. Metro also announced a number of management appointments including Juergen Fitschen, who after stepping down this year as co-CEO of Deutsche Bank AG will become supervisory board chairman for the future consumer electronics company. Current Metro supervisory board chairman Juergen Steinemann will retain that title at the food company.

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