Kingfisher details Kesa demerger
Market launch set for July 7
June 17 2003
Kingfisher has set out its plans for the demerger of its electricals business.
The company will ask shareholders to approve the proposal at an EGM July 4, with the new business, Kesa Electricals expected to start trading on July 7.
The move will leave Kingfisher focussed purely on its global DIY businesses, headed by B&Q. Kingfisher Chairman Francis Mackay said: “The final step in our strategic transformation, the demerger of Kesa Electricals, is now in sight and within the promised timetable. The managements of these two strong and focused businesses can now concentrate on the growth opportunities in each of their markets.”
Kesa will be Europe’s third largest electricals retailer, operating 790 stores in seven countries. It is the market leader in France with Darty and BUT and number two by sales in the UK market with Comet. It also has leading positions in Belgium and the Czech Republic and Slovakia.
Kesa will be listed on the London Stock Exchange with, subject to the approval of the French stock market authorities, a secondary listing on the Premier Marche in Paris.
The new company will be chaired by David Newlands, with Jean-Noel Labroue who has headed the group under Kingfisher since autumn 2000, as chief executive. Martin Reavley, formerly director of corporate development at Kingfisher and managing director of its Chartwell Land property arm, will be finance director.
Newlands said: “I am very excited about the opportunities that the demerger presents for the Kesa business. Kesa Electricals is a leading player in the European electricals retail market with strong brands and strong market positions. The demerger will bring greater focus to the business and enable us to drive future growth while maximising value for our shareholders.”
Kingfisher shareholders will get one Kesa share for every Kingfisher share held. After demerger Kingfisher will consolidate its shares on a seven-for-eight basis, while Kesa will give shareholders one share for every five held.
