Currys Plc confirms sale of Greek subsidiary Kotsovolos to PPC for €200m
In a significant move that streamlines its operations, British electrical and telecommunications giant Currys Plc has finalized the sale of its Greek and Cyprus retail business, Kotsovolos, to Public Power Corporation S.A. for an enterprise value of €200 million. This pivotal transaction follows a comprehensive strategic review announced in June 2023, underscoring the company’s resolve to concentrate on key markets in the UK, Ireland, and the Nordics while simultaneously reinforcing its financial position.
The enterprise value of €200 million, factoring in lease liabilities, showcases the strategic premium of Kotsovolos’ robust market presence and diverse product offerings. The deal, reflecting a multiple that considerably exceeds Currys’ recent share valuations, is poised to unlock superior value for shareholders as opposed to maintaining the status quo within the group.
With net cash proceeds anticipated at about £156 million post-transaction, Currys’ immediate focus will be on reducing net debt. Subsequently, the company plans to discuss potential pension deficit reductions and future contributions with pension trustees. Once these priorities are managed, Currys aims to enhance business growth investments and consider returning surplus capital to its shareholders.
Currys Plc Strategically Disposes Kotsovolos for Enhanced Shareholder Value at €200m. Photo courtesy of Currys.
The board’s unanimous consent on the transaction highlights their conviction that this move aligns perfectly with shareholder interests. The completion of the sale, expected in early 2024, remains contingent on shareholder approval, merger control clearance from the European or Hellenic Competition Commissions, and other standard conditions.
Alex Baldock, Currys Chief Executive, commented on the disposal, noting the exceptional outcome for the company and shareholders. He commended Kotsovolos for its significant contributions to the group and expressed confidence in the business’s ongoing success post-transaction.
This strategic divestiture marks a decisive step for Currys Plc, promising to refine its business structure, amplify shareholder returns, and secure a sustainable growth trajectory for the future.