Metro: Redos given exclusivity in Real sales process

09/05/2019

Metro is holding exclusive talks with Redos on the sale of its Real hypermarkets, the German retailer announced yesterday evening. Metro wrote in its press release that the current state of negotiations would lead to a €385mn impairment on Real. The retail subsidiary has 279 branch stores and 65 of its own properties. Its stated value is €1bn; the equity and expected cash inflow for Metro is €0.5bn. Real’s real estate was most recently valued at €900mn. Metro is to initially retain a stake in Real’s operating business of just under 25%. There is also talk of an “adjustment to the branch network”. According to information acquired earlier, the Redos consortium also includes Morgan Stanley and the Hamburg-based company ECE. In April there were media reports on Redos’ withdrawal from the bidding process, which suggested a sale to the last remaining bidder, X+Bricks.


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