Kesa Electricals sells Comet for £2
Kesa Electricals has decided to cut its losses with Comet and sell it for £2 to Hailey Holdings.
Kesa Electricals has announced a deal that will see Hailey Holdings take over the former's loss-making Comet brand for £2.
The ordinary shareholders still need to ratify the agreement, but if it does go through it could highlight the negotiation skill demonstrated by all parties.
Under the terms of the transaction, Kesa will retain the liability for the Comet defined benefit pension scheme and invest £50 million in the Hailey.
David Newlands, chairman of Kesa Electricals, noted disposing of Comet is the best option for the company.
He added the "ongoing negative impact" of the chain of electrical stores, coupled with the significant challenges faced in turning it around, were the primary reasons behind implementing this course of action.
It comes after Kesa - which also owns Vanden Borre, Darty and BCC - unveiled its half-year trading results to October 31st 2011, which revealed group revenue fell by 6.2 per cent.
Posted by David Gleck
Source: Kesa press release, November 9th