GUS demerges Argos chain, Experian |
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Tue, 28 Mar 2006 11:40
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LONDON: Retailer GUS Plc. is demerging its Argos chain and the credit rating agency Experian with an intention to list them independently on the London Stock Exchange. The demerger will take place in six to 12 months.
Estimates by analysts indicate that the Argos Retail Group, which has the Homebase DIY chain is valued around 4.4 billion pounds and Experian around 7.2-7.5 billion pounds.
In a statement, the company said at the time of the demerger Experian will issue new shares listed on the London Stock Exchange to a combination of existing GUS shareholders and new investors.
Announcing the plans, GUS chairman Victor Blank said the demerger will enable all the existing shareholders of GUS to continue to participate directly in the future development of these successful businesses. GUS will update the market on further decisions on the planned demerger.
GUS had already spun off its luxury fashion label Burberry Group in December as the first step in restructuring its business.
There are some 650 Argos stores in the U.K. and Ireland, with sales of about 4 billion pounds. The Homebase chain has nearly 300 stores generating sales of more than 1.5 billion pounds.
Experian operates in 31 countries, employing 12,000 people.
GUS said Terry Duddy will remain chief executive of Argos Retail Group while Don Robert will continue as chief executive of Experian. The senior management teams of both the units will be retained.
The group is paying around 100 million dollars to reduce its pension deficits.
GUS shares lost 17 pence to 1,106 pence Monday giving the company a market value of 9.53 billion pounds.
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