In a thrilling strategic maneuver, Currys PLC has announced its plans to offload its retail businesses in Greece and Cyprus for a staggering €200 million ($213 million). This audacious move is set to reshape the landscape of the British electronics retail giant and send ripples through the industry.
Unveiling the Powerhouse Buyer
Currys is not merely relinquishing its Greek and Cypriot ventures to anyone. The baton is being passed to the mighty Greek power company, Public Power Corp. SA. Public Power Corp., as the largest electric power company in Greece, is flexing its financial muscle, setting the stage for a monumental deal. The buyer’s legal counsel, Vizas-Katrinakis and Associates Law Firm, based in Athens, is providing valuable guidance throughout the process.
Currys To Sell Greek and Cypriot Biz : Currys’ Strategic Prowess
Currys has opted to sell Dixons South East Europe AEVE, the holding company of Kotsovolos, their subsidiary in Greece and Cyprus, to Public Power Corp. The British retailer is set to simplify its corporate structure and sharpen its focus on key markets like the U.K., Ireland, and the Nordics. This visionary move is designed to unlock Currys’ potential and pave the way for a thrilling future.
A Financial Game Changer
This audacious deal, at its core, is all about financial strategy. Currys plans to retain the cash proceeds from the sale, which is expected to be around €179 million. This infusion of capital will enable Currys to trim down its debt and rectify the pension fund’s deficit. With a leaner financial profile, the company is gearing up to reinvest, fostering business growth, and creating surplus cash for its shareholders.
Currys To Sell Greek and Cypriot Biz : The Kotsovolos Legacy
Kotsovolos, a major player in the Greek and Cypriot electronics retail market, boasts an impressive portfolio. With a presence of 95 stores in the region, including 27 massive megastores, Kotsovolos stands as a formidable force. Their arsenal includes vast warehouses, a fleet of vehicles, and an extensive network of partners to install appliances for consumers. With a turnover of €733 million for the year ending April 2023, this entity leaves an indelible mark.
The Vision of Public Power Corp.
Public Power Corp.’s Chief Executive, Georgios Stassis, views this acquisition as a pivotal step toward becoming “an integrated, customer-oriented provider of products and services,” both online and in physical stores. The electric power giant’s ambitious vision is set to invigorate the Greek and Cypriot markets, with far-reaching implications for the industry.
The Countdown to March 2024
The deal is poised to reach its grand finale by March 2024. However, the outcome hinges on the approval of Currys’ shareholders and clearance from the European Commission and the Greek Hellenic Competition Commission. As the countdown begins, the industry is abuzz with anticipation.
Currys To Sell Greek and Cypriot Biz : Market Reaction
The ripple effect of this bold announcement is already evident in the market. Shares in Currys, listed on the FTSE 250 index of the London Stock Exchange, surged to 47.78 midday Friday, marking an impressive 4% gain from Thursday’s close at 45.98 pence. Citigroup Global Markets Ltd. is guiding Currys through this transformative journey as a sponsor and financial adviser.
