Carrefour sells 97 supermarkets in France for EUR365M
Carrefour, the world's second-largest retailer after Wal-Mart Stores Inc. (WMT), said in a statement that the sale and lease-back of "mature" real-estate assets would allow it optimize the use of its capital, which would be reinvested into other real-estate developments.
The move comes as the group struggles on its home ground. Carrefour, whose major shareholders include luxury-goods magnate Bernard Arnault and investment fund Colony Capital, has been losing French market share for years, plagued by an image that its prices are too high. In addition, its hypermarkets have come under pressure from more-convenient and smaller shops. The group issued two profit warnings in the second half of this year. With growth in France sluggish, Carrefour's operations in southern Europe have also been badly affected by the slowdown in growth related to the euro zone's sovereign debt crisis.
Earlier this month, Carrefour made a takeover bid for its franchisee and long-term partner Guyenne et Gascogne SA (GG.FR) as it seeks to defend its position in southwestern France.
Carrefour said Tuesday that it has multiple renewal options for the 97 supermarkets it has sold to La Francaise AM, a investment fund majority-owned by Credit Mutuel Nord. The leases are worth 6.5% of the sale price, including transfer duties, Carrefour said.
Carrefour shares closed up 0.2% at EUR17.09 Tuesday. The stock has fallen 37% so far this year.
Source: online.wsj.com