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Currys PLC on Friday said Public Power Corp SA received unconditional approval from the Greek competition authority to purchase Dixons South East Europe AEVE from Currys
London-based consumer electronics retailer Currys is looking to complete the disposal for the holding company of Currys’ entire Greece and Cyprus retail business, trading as Kotsovolos.
The deal is worth around €200 million in enterprise value, adjusted to include lease liabilities of €97 million.
Following approval from the Hellenic Competition Commission, Currys expects to complete the disposal in the first half of April. Net cash proceeds of the disposal, after taking into account transaction and separation costs, intercompany balances and cash in the business, are expected to be approximately £156 million, or €179 million.
‘In the near term, it is the board’s intention to use proceeds to reduce net debt and the group expects to finish the year with a healthy net cash balance,’ Currys said.
Currys said the deal implies a multiple of six times adjusted earnings before interest, tax, depreciation and amortisation of €49 million and 14 times adjusted earnings before interest and tax of €21 million for the 52 weeks ended April 29.
Shares in Currys were down 0.8% to 64.95 pence each in London on Friday morning.
Currys also noted it will release a full-year trading update on May 14.
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