South Africa's SPAR sells Polish business to Specjal

Spar

04/09/2024 13:29

JOHANNESBURG, Sept 4 (Reuters) - South Africa's
second-biggest grocery group SPAR  SPPJ.J  has sold its
loss-making business in Poland to local Polish retailer Specjal
for 185 million rand ($10 million), it said on Wednesday.
    SPAR will be required to recapitalise the business at an
estimated cost of 2.7 billion rand, the majority of which will
be achieved by it settling the business's funding debt, it said.
    Shares in the group were down 6.79% at 117 rand by 1220 GMT.
    SPAR, which has been reviewing its European operations, said
the deal provides certainty for investors and removes the
loss-making business from its balance sheet.
    "For SPAR Poland to become earnings generative and value
accretive to the group, significant time and investment would be
required," it said.
    SPAR's Polish assets comprise approximately 200 retail
stores, three distribution centres and one production facility.
    "This also gives clarity to our dedicated employees in
Poland, who now have the potential to expand the business under
the ownership of Specjal, a company with the requisite
resources, scale, and capacity to take these assets to the next
level," SPAR Group CEO Angelo Swartz said.
    SPAR operates in 11 countries, but its core South African
business accounts for about 60% of group sales.
    ($1 = 17.9059 rand)

 (Reporting by Sfundo Parakozov; Editing by Jan Harvey)
 ((Sfundo.Parakozov@thomsonreuters.com;))