Exit from Taiwan lifts shares of French company Carrefour
2022.07.20 10:58
FILE PHOTO: View of a Carrefour Hypermarket store in Nantes, France, February 4, 2022. REUTERS/Stephane Mahe
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.
