Exit from Taiwan lifts shares of French company Carrefour
Reuters
Published Jul 20, 2022 03:10AM ET
PARIS (Reuters) - Shares in French food retailer Carrefour (EPA:CARR) rose 3% on Wednesday after it agreed to sell its remaining 60% stake in its Taiwan business, sparking hopes among some investors it could use the extra firepower to buy back shares.
By 0702 GMT, Carrefour shares were up 3.01% at 17.48 euros.
The transaction, which values Carrefour Taiwan at an enterprise value of 2.0 billion euros, is set to be completed by mid-2023, the French company said in a statement.
"This is at a better price than originally speculated (which was 1.6 billion euros back in August 2021) given an estimated enterprise value of 2 billion (for 100% of the business)," wrote brokerage Jefferies.
"A mid-2023 completion should provide the firepower for another, sizeable share buyback. We estimate an earnings accretion in the mid single digit region," they added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.