(Alliance News) - Currys PLC on Wednesday said it has completed the sale of Dixons South East Europe AEVE, trading as Kotsovolos, to Public Power Corp SA for an enterprise value of EUR200 million, or GBP175 million.
Curry is a London-based consumer electronics retailer, while Kotsovolos was the holding company of Currys' entire Greece and Cyprus retail business.
Currys said the cash proceeds it received were GBP156 million, as anticipated, after taking into account transaction and separation costs, intercompany balances and cash in the business.
With the disposal of Kotsovolos, Currys said its structure has been simplified, allowing it to focus on its larger markets of the UK & Ireland and the Nordics.
This is alongside strengthening its balance sheet, Currys said, which will increase flexibility to invest in and grow the business, alongside improving shareholder returns.
As previously announced, Curry said that, in the near term, it is the board's intention to use the net cash proceeds to reduce net debt. Currys expects to finish the year in a net cash position.
Currys also reiterated its annual expectations, predicting at least GBP105 million in adjusted pretax profit for the year ending April 29. The measure is adjusted to assume Kotsovolos was fully consolidated for the whole of the financial year.
In its financial 2023, it recorded an unadjusted pretax loss of GBP450 million.
Currys will publish a full-year trading update on May 14.
"The sale of Kotsovolos is an excellent outcome for Currys' shareholders. It further strengthens the group, while we continue to get the Nordics back on track and keep up the UK&I's encouraging momentum. We continue to progress well on both," said Chief Executive Officer Alex Baldock.
"Kotsovolos is a fine business that we've been proud to own. I'd like to thank every one of our Greek colleagues for everything they've done, and wish them every future success."
Shares in Currys rose up 0.1% to 63.30 pence each in London on Wednesday
By Greg Rosenvinge, Alliance News senior reporter
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