2nd Sep 2014 15:53
LONDON (Alliance News) - German retail group Metro AG said Tuesday it is planning to sell its 9% shareholding in UK food wholesaler Booker Group PLC via an accelerated book build, in order to reinvest capital in other areas and further reduce its debt level.
In 2012, Metro sold its UK cash and carry operations to Booker and formed a strategic partnership with Booker, leading it to take a significant indirect shareholding in the company.
It said that this arrangement has worked well for both companies over the past two years, based on the strong performance of the combined UK businesses.
Metro subsidiary Metro Cash & Carry International Holding BV will sell 156.6 million shares at a price that will be agreed by Metro and bookrunner JP Morgan Cazanove at the close of the book build process.
"Our relationship with [Booker Chief Executive] Charles Wilson and the team at Booker has created significant value over the last two years, in terms of both our shareholding and our strategic partnership," said Metro Chief Executive Olaf Koch in a statement. "We look forward to working with Booker over the years to come, as we continue with our strategic partnership."
Shares in Booker closed up 0.5% at 135.30 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
Booker Group