Carrefour has agreed to offload the majority of its stake in Cargo Property Assets – a real estate company that owns about one-third of the retailer’s distribution centres – to property company Argan, as the retailer attempts to streamline its operations as part of its 2022 restructuring strategy.
Cargo Property Assets, founded in 2016, is dedicated to Carrefour Group’s logistics real estate in France.
The company is 32% owned by Carrefour group, and the retailer manages Cargo and is its leading shareholder.
According to Carrefour, this sale would be based on a €900 million valuation of the real estate assets held by Cargo Property Assets, transfer tax excluded, and Carrefour will receive around €290 million once the transaction is concluded, about 80% of which in cash and 20% in Argan stock.
It will hold a 5% stake in Argan once the transaction is completed.
Carrefour is currently undertaking a five-year restructuring plan to boost group sales and profits, and the 2022 plan includes the divestiture of €500 million of non-strategic real estate assets.
The completion of the transaction is subject to the approval of Argan shareholders and other customary conditions. It is expected to be effective by the end of 2019.
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