METRO AG

M&A Activity • Feb 11, 2020

News Details

Ad-hoc | 11 February 2020 00:02

METRO AG reaches commercial agreement with consortium of SCP Group and x+bricks on the sale of Real

METRO AG / Key word(s): Disposal/Agreement

METRO AG reaches commercial agreement with consortium of SCP Group and x+bricks on the sale of Real

11-Feb-2020 / 00:02 CET/CEST

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

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METRO AG (“METRO”) reached a commercial agreement with a consortium of The SCP Group S.à r.l. and x+bricks AG on the sale of the hypermarket business and related business activities (“Real”). However, selected open issues are still under negotiation.

The agreed concept foresees a sale of Real as a whole without a remaining stake of METRO in Real for an Enterprise Value of approx. EUR 1bn. Based on the commercial agreement, METRO expects a net cash inflow of approx. EUR 0.3bn. METRO continues to expect to receive more than EUR 1.5bn in net proceeds including all transaction costs from the sale of both Real and a majority stake in its Chinese operations.

The transaction also foresees that METRO service companies continue to provide services to Real for a transition period, however, to a decreasing extent over time. The resulting excess capacity in METRO’s service companies will be addressed by proactive efficiency measures, which will lead to recurring savings. These measures are estimated to cause approx. EUR 0.2bn cumulated one-off costs in the financial years 2019/20 to 2021/22.

A binding agreement (signing) has not yet been concluded. On both sides the approval of the commercial agreement by the corporate bodies is still pending, at METRO by the Management Board and the Supervisory Board. The completion of a potential transaction is subject to approval by anti-trust and regulatory authorities.

Contact:

METRO AG

Sabrina Ley

Director Investor Relations

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11-Feb-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

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Language:	English
Company:	METRO AG
	Metro-Straße 1
	40235 Dusseldorf
	Germany
Phone:	+49 (0)211 6886-1524
Fax:	+49 (0)211 6886-3759
E-mail:	investorrelations@metro.de
Internet:	www.metroag.de
ISIN:	DE000BFB0019, DE000BFB0027
WKN:	BFB001, BFB002
Indices:	MDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	972287

End of Announcement	DGAP News Service