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LONDON, Dec 22 (Reuters) - Home improvement group Kingfisher said on Monday it had agreed to sell a 70 percent stakein its loss-making B&Q China business to Wumei Holdings Inc for140 million pounds ($219 million).
The agreement follows Kingfisher's announcement in March ofits plans to look for a strategic partner to help develop itsB&Q business in China, which is made up of 39 stores and employs3,000.
"I am delighted to have found a strong retail partner whowill help us to release the financial value of our business inChina," said Véronique Laury, who succeeded Ian Cheshire asKingfisher's chief executive on Dec. 8.
"This will enable us to focus our financial resources andmanagement talent on the large and attractive European homeimprovement market," she said.
Kingfisher, which trades as B&Q and Screwfix in Britain andCastorama and Brico Depot in France, is Europe's biggest homeimprovement retailer.
Beijing-based Wumei has a retail network comprising around650 supermarkets and 10 department stores in northern, easternand western China.
The deal is conditional on Chinese Ministry of Commerceapproval and, if approved, is expected to close during the firsthalf of 2015.
Shares in Kingfisher, down 15 percent so far this year,closed Friday at 342.2 pence, valuing the business at 7.65billion pounds. ($1 = 0.6396 pounds) (Reporting by James Davey; Editing by Neil Maidment)
Kingfisher (KGF)
