PARIS – Carrefour SA, the world’s second-largest retailer behind Wal-Mart Stores Inc., has submitted a proposal to employees and shareholders to spin off 100 percent of its hard discount brand Dia and 25 percent of its real estate division, Carrefour Property.
Carrefour said it planned to distribute the totality of Dia shares to Carrefour shareholders in the form of an extraordinary dividend. Under the proposal, each Carrefour shareholder would receive a number of Dia shares equal to the number of Carrefour shares held. The Dia shares would be listed on the Madrid stock exchange.
Similarly, a quarter of Carrefour Property shares held by the retailer would be distributed to shareholders proportionally to the number of Carrefour shares they hold. Under the plan, Carrefour Property would remain listed on the Euronext Paris stock exchange.
“The two transactions proposed today are a continuation of the strategy we have been conducting since 2009, and if approved, will provide Carrefour with new momentum,” stated Carrefour chief executive officer Lars Olofsson. “They aim to make the group more focused on its operational priorities while creating value for our shareholders.”
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The proposed projects will be put to a shareholder vote at Carrefour’s annual general meeting on June 21 and Carrefour Property’s AGM on June 23, the retailer added. If approved, the extraordinary dividends will be paid out in July.