29th Mar 2021 08:16
(Alliance News) - Domino's Pizza Group PLC on Monday said it has agreed to sell its Pizza Pizza operations in Iceland for GBP13.7 million in cash.
Domino's Iceland is the master franchisee of Domino's Pizza in Iceland, operating 23 stores.
The purchaser, PPH, is an investment vehicle owned by a consortium which includes Eyja fjarfestingafelag III, a wholly-owned subsidiary of Eyja fjarfestingafelag. Eyja fjarfestingafelag is partly-controlled by Birgir Bieltvedt, who is also an "indirect owner" of DP Norway.
Earlier this month, Domino's separately agreed the sale of its Swedish business PPS Foods to Bieltvedt's vehicle Eyja fjarfestingafelag III for EUR2 million in cash.
The company said proceeds from the Icelandic operations sale will initially be used to reduce its debt. It expects the transaction to complete before the end of May, once Icelandic competition clearance is obtained by May 10.
The sale is part of Domino's planned exit from all directly operated international markets to allow the FTSE 250-listed company to focus on its core UK and Ireland markets. Talks remain ongoing over a disposal of its Swiss operations, it added.
Shares in Domino's Pizza were down 0.5% at 349.70 pence in London on Monday morning.
By Zoe Wickens; [email protected]
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