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Metro shareholders back plans to split off food business
February 6, 2017 / 8:47 PM / 7 months ago

Metro shareholders back plans to split off food business

BERLIN, Feb 6 (Reuters) - Shareholders in Metro voted on Monday in favour of a plan to split the German retailer into two companies, one a wholesale and hypermarket food business, and the other Europe’s biggest consumer electronics group.

Metro, a sprawling conglomerate with 2,000 stores in 29 countries, has been restructuring in recent years to focus on cash-and-carry and consumer electronics, selling its Kaufhof department stores and Real supermarkets in eastern Europe.

It said in a statement on Monday that 99.95 percent of the voting share capital represented voted in favour of the split.

Metro hopes the split will help the independent companies pursue more acquisitions and trigger a revaluation of the stock as Metro currently trades at a discount to other pure wholesale retailers such as Sysco and Britain’s Booker.

Metro last week reported slightly lower than expected profit in the critical Christmas quarter, hurt by the performance of its cash and carry and hypermarket businesses. (Reporting by Victoria Bryan and Emma Thomasson; editing by David Clarke)

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