Metro Cash And Carry Limited - Disposal Of Israeli
Metro Cash and Carry is pleased to announce that it has reached an agreement
to dispose of the bulk of its Israeli interests, with the sale of its stake
in Club Market Marketing Chains, a supermarket chain, for a consideration of
US$28 million in cash. Metro will also retain a 90 percent share of New-
Pharm Drug Stores, a chain of pharmacy stores, and 100 percent of Mashbir
Food, its wholesale operations.
The chain was purchased by Elleren (D.D) Investments, which is listed on the
Israeli Stock Exchange. The cash proceeds from the sale will initially be
used to reduce group debt.
All of the Israeli operations were written off by Metro during the course of
the previous financial year. Metro is currently involved in negotiations to
sell the New Pharm business but intends to retain its small wholesale
operation for the time being.
The disposal is subject to South African and Israeli regulatory approval.
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