MADRID Carrefour (CARR.PA) listed Spanish discount chain Dia on Tuesday in a 2.3 billion euro ($3.3 billion) spin-off designed to give the French retailer more room to focus on revamping its weak domestic business.
Dia (DIDA.MC), the world's third-biggest hard-discount group behind German retailers Aldi and Lidl, began trading on the Madrid stock exchange at 3.45 euros per share, slightly below a 3.5 euro reference price set last week.
The price was also below the 4 billion euro valuation touted by Carrefour for the supermarket chain in June, but broadly in line with analysts' estimates.
Weakened by three profit warnings since autumn, Carrefour believes separating Dia will allow it to focus on its turnaround plan and will highlight the value of the chain. Dia has turnover of nearly 10 billion euros,
Carrefour shareholders will receive one share in Dia for each Carrefour share.
(Reporting by Tracy Rucinski. Editing by Jane Merriman)
Our top photos from the last 24 hours.