Published: Thursday November 1, 2012 MYT 9:07:00 AM
Updated: Thursday November 1, 2012 MYT 11:04:09 AM
Carrefour selling Malaysian ops to Aeon for RM990m (Update)
KUALA LUMPUR: Carrefour, which is Malaysia's fourth-largest retailer with 26 hypermarkets, announced on Thursday it is selling its Malaysian operations to Japan's Aeon Co. Ltd for an enterprise value of 250mil (RM990.19mil).
According to a statement posted on its website, it said the "transaction is part of Carrefour's strategy of refocusing on its core activities and allocating its resources to mature countries where it occupies strong and established positions and emerging markets where it has strong growth potential".
Carrefour, which set up its Malaysian operations in 1994, recorded net sales of 400mil over a 12-month period to June 30, 2012.
Aeon was established in 1984 in Malaysia. With 29 stores, Carrefour said Aeon was acquiring a leading position in this market.
Carrefour said Aeon should be able to continue the successful development of its business in Malaysia, as it has done previously in Japan.
"The closing of the transaction is immediate and effective today," it said.
To recap, the Carrefour Group is the largest retailer in Europe, and the second largest worldwide, with more than 9,900 stores under banner in 30 countries and 412,000 employees. It has more than three billion cash transactions per year.
AEON Co., Ltd. is the largest retailer in Japan, operating 540 general merchandise stores and 1,502 supermarkets in Japan, and 113 stores outside its domestic market as of end of August 2012.
Below is the earlier story
PARIS: Carrefour said on Wednesday that it made final the sale of its operations in Malaysia for an enterprise value -- including equity and debt -- of 250 million euros ($323.95 million) to Aeon, Japan's No. 1 supermarket operator.
The sale -- effective on Wednesday - is the latest notched up by recently installed chief executive, Georges Plassat, who is seeking to refocus the world's No. 2 retailer on its key markets and cut its debt after years of underperformance.
Carrefour is the fourth-largest retailer in Malaysia with 26 hypermarkets, which brought in 400 million euros in revenue in the 12 months to June 30.
"The transaction is part of Carrefour's strategy of refocusing on its core activities and allocating its resources to mature countries where it occupies strong and established positions and emerging markets where it has strong growth potential," the company said in a statement.
Aeon, Japan's top supermarket operator, which began as a Kimono store in the late 1700s, is looking for overseas profit drivers as its business at home is hurt by a fall in consumer spending, a shrinking population and persistent profit-sapping deflation.
Carrefour recently agreed to sell its stores in Colombia to Chile's Cencosud for $2.6 billion.
It also plans to shut its Singapore unit by year-end and pulled out of recession-hit Greece in July amid falling sales.
Plassat has made clear Carrefour will stay in Brazil and China, but analysts expect disposals in Indonesia, Turkey, Romania and Taiwan, with proceeds of between 1 billion and 3 billion euros.
The Malaysia unit sale talks were first reported by Reuters in September. - Reuters