Walmart: sells British subsidiary Asda
(CercleFinance.com) - US retail giant Walmart announced on Friday that it will sell its UK subsidiary Asda in a deal based on an enterprise value of 6.
8 billion pounds (about 8.7 billion dollars).
In a statement, Walmart said it will retain a minority stake in the company, which will be controlled by the Issa brothers, two British businessmen, and the private equity firm TDR Capital.
Under the terms of the agreement, Walmart expects to record a loss of 2.5 billion dollars, excluding cash in FY 2020/2021.
In addition, the group expects a dilutive effect of approximately 0.25 dollar per share in the first fiscal year after the transaction is completed, due to the absence of Asda-related earnings.
The transaction - which still requires regulatory approval - is expected to close in the first half of Walmart's 2021/2022 fiscal year.
The Walmart share is up over 2% in pre-market trading on Friday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
8 billion pounds (about 8.7 billion dollars).
In a statement, Walmart said it will retain a minority stake in the company, which will be controlled by the Issa brothers, two British businessmen, and the private equity firm TDR Capital.
Under the terms of the agreement, Walmart expects to record a loss of 2.5 billion dollars, excluding cash in FY 2020/2021.
In addition, the group expects a dilutive effect of approximately 0.25 dollar per share in the first fiscal year after the transaction is completed, due to the absence of Asda-related earnings.
The transaction - which still requires regulatory approval - is expected to close in the first half of Walmart's 2021/2022 fiscal year.
The Walmart share is up over 2% in pre-market trading on Friday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.