Metro in exclusive talks to sell Real hypermarkets to real estate investor Redos | Progresiv
Metro is in exclusive talks to sell its Real hypermarkets to a consortium led by real estate investor Redos, the German retailer said, adding it was taking a 385 million euros impairment charge on the loss-making chain. 
The announcement by Metro, the evening before it reports second-quarter results, confirms an earlier report by Reuters that helped Metro’s shares close up 1.7 percent.
Once a sprawling retail conglomerate, Metro has been restructuring in recent years to focus on its core cash-and-carry business, selling Kaufhof department stores and then splitting from consumer electronics group Ceconomy.
It has long sought to shed its Real hypermarkets chain, which has annual sales of more than 7 billion euros but has struggled for years in a fiercely competitive German market, dominated by discounters Aldi and Lidl.
Metro said the exclusivity lasted until the end of July, with negotiations expected to be completed in the summer and anti-trust approval needed for a final deal.
The parties have agreed a framework under which Real would be sold as a whole to Redos, with Metro initially retaining a 24.9 percent stake in the operating business and a ‘put’ option to sell that holding which could be exercised after three years.
The liabilities of the struggling chain will be assumed by the new owner, resulting in a preliminary cash inflow of around 500 million euros to Metro, with Redos planning to make “extensive” investments, while also selling some Real stores.
Metro said the current status of negotiations would lead to it taking a 385 million euro impairment in its first-half financial statement. (www.reuters.com)
