Disposal

28 Oct 2005 07:00

GUS PLC28 October 2005 28 October 2005 GUS plc Disposal of Wehkamp, its last remaining home shopping business GUS plc, the retail and business services group, today announces the disposal ofWehkamp, its last remaining home shopping business. Wehkamp will be sold for about €390m (£265m) to Industri Kapital, a privateequity firm. Completion is expected in December, subject to European Unionregulatory approval. The cash proceeds receivable on completion will be used topay down debt. Wehkamp, the leading home shopping brand in Holland, generated sales of €326m(£222m) and operating profit of €33.0m (£22.5m) under IFRS in the year to 31March 2005. The net book value of assets at the date of completion will be approximately€340m (£230m). GUS therefore expects to realise a gain, after costs, of about€35m (£25m) on the transaction, which will be booked in the second half of thecurrent financial year. John Peace, Group Chief Executive of GUS, commented: "This sale leaves Argos Retail Group focused solely on general merchandiseretailing in the UK and Ireland. We believe that the transaction is in the bestinterests of GUS and of the customers and employees of Wehkamp and we wish themwell for the future." Enquiries GUSRichard Ashton Finance Director, Argos Retail Group 020 7495 0070Stuart Ford Investor Relations Manager FinsburyRupert Younger 020 7251 3801 GUS announcements are available on its website, www.gusplc.com. Certain statements made in this announcement are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual events or results to differmaterially from any expected future events or results referred to in theseforward looking statements. This information is provided by RNS The company news service from the London Stock Exchange