31st Jul 2015 13:48
LONDON (Alliance News) - Dixons Carphone PLC Friday said it has entered into an agreement to dispose of The Phone House Portugal to Digital Place SA for an undisclosed amount.
The Phone House Portugal operates 130 stores and reported losses after restructuring costs of GBP8 million in the 13 months to May 2, as well as booking a GBP13 million impairment charge for the group.
Following completion, which is expected to take place by the end of August, Dixons Carphone will receive a small cash consideration, together with a contingent deferred cash consideration measured against profitability and payable over five years. The money received will be used in the business and operations of the group, it said.
Dixons Carphone will then enter into a contract to provide insurance services to The Phone House Portugal through its Connected World Services division.
The FTSE 100-listed electricals and telecoms retailer is currently focusing on a strategy to grow through service partnerships in its Connected World Services division. Connected World Services is Dixons Carphone's business-to-business arm, which aims to leverage the company's expertise, operating processes and technology to provide a range of services to businesses.
The disposal of The Phone House Portugal comes after Dixons Carphone sold The Phone House Deutschland GmbH and its 83% stake in The Phone House Netherlands BV earlier in the year.
Shares in Dixons Carphone were trading up 1.1% at 453.60 pence Friday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
DC..L