Kingfisher PLC Agreement to sell controlling stake in B&Q China (4095A)

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RNS Number : 4095A

Kingfisher PLC

22 December 2014

Kingfisher plc announces binding agreement to sell controlling stake in its B&Q China business

Kingfisher plc, Europe's leading home improvement retailer, today announces a binding agreement to sell a controlling 70% stake in its B&Q China business to Wumei Holdings Inc for a total cash consideration of GBP140 million. The agreement follows Kingfisher's previous announcement of its plans to look for a strategic partner to help develop its B&Q business in China.

The transaction is conditional on MOFCOM (Chinese Ministry of Commerce) approval and, if approved, is expected to close during the first half of next year.

Commenting on the announcement, Véronique Laury, Kingfisher's Group Chief Executive, said:

"I am delighted to have found a strong retail partner who will help us to release the financial value of our business in China. This will enable us to focus our financial resources and management talent on the large and attractive European home improvement market."

NOTES TO EDITORS

Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with 1,176 stores in 11 countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçta brand, a 50% joint venture in Turkey with the Koç Group.

B&Q China opened its first store in China in 1999 and now has 39 stores in the market, with over 3,000 employees.

Wumei Holdings Inc is one of China's leading retail chain store operators. It was founded in 1994 and is headquartered in Beijing. The retail network comprises around 650 supermarkets and 10 department stores in northern, eastern and western China with a sales area of over 1.4m sqm. It is the controlling shareholder of Hong Kong listed Wumart Stores Inc and Shanghai listed Xinhua Department Store. Its brands include Wumart, Jingbei Shopping Mall, Merrymart, Xinhua Department Store, Zhejiang Gongxiao and Laodafang.

UBS Investment Bank acted as financial adviser to Kingfisher on the transaction and Hogan Lovells acted as legal adviser.

ENQUIRIES

 
 
 Sarah Levy, Director of Investor Relations     +44 (0) 20 7644 1032 
 
 Nigel Cope, Head of Media Relations            +44 (0) 20 7644 1030 
 
 Brunswick (London)                             +44 (0) 20 7404 5959 
 
  Brunswick (China)                             +86 (0) 21 6039 6305 
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This information is provided by RNS

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