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Carrefour picking up Showroomprive stake from Conforama
Posted on Friday, 12 January 2018 11:58
French retail giant Carrefour has committed to acquire a 17.0 per cent shareholding in ecommerce player Showroomprive from Conforama as part of a strategic agreement between the companies.
Under the terms of the transaction, the buyer will pay EUR 13.50 per share, valuing the deal at EUR 79.00 million.
Should Carrefour decide to undertake a full takeover of Showroomprive within 18 months of completion of the initial stock purchase, the firm will pay an additional consideration to Conforama.
This will be calculated subtracting the EUR 13.50 per share from the ultimate offer price and multiplying by the number of securities sold via the second transaction.
Carrefour said the purchase of the 17.0 per cent stake is in line with the two companies’ plans to develop a leading omni-channel offering covering the commercial, marketing, logistics and data segments.
Chief executive Alexandre Bompard noted that the move enables the group to enter the online private sales market.
The 17.0 per cent stake purchase remains subject to the receipt of a waiver from the Autorité des Marchés Financiers, which will exempt Carrefour from the obligation to carry out a public offer upon closing.
Conforama has owned its 17.0 per cent share of Showroomprive since May 2017, when it invested EUR 157.40 million in the business.
Other stockholders include GSA Capital Partners and Marshall Wace, both of which injected close to EUR 2.00 million each in October and November 2017, respectively, picking up stakes of around 0.5 per cent in the process.
Showroomprive operates as a private sales website which organises exclusive sales of big name brands for a membership base numbering 28.00 million.
The firm offers 2,000 brands and has sold some 35.00 million items.
It posted net revenue of EUR 134.30 million in the third quarter of 2017, up from EUR 104.80 million over the corresponding timeframe in 2018.
However, in December it noted that its performance for Q4 was likely to be lower than previously anticipated; it had initially predicted revenue for EUR 690.00 million and earnings before interest, taxes, depreciation and amortisation of EUR 25.00 million for the full year.
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