Metro To List 25% Of Russian Cash And Carry

Europe's fourth biggest retailer, Germany's Metro AG has confirmed speculation which surfaced in lat…

Europe's fourth biggest retailer, Germany's Metro AG has confirmed speculation which surfaced in late 2013 that it is to list 25% of its Russian cash and carry business.

The retailer said yesterday that it plans to sell up to a quarter of its stake in the cash and carry unit in an initial public offering during the first half of this year on the London stock exchange.

Metro has been restructuring its large portfolio of cash and carries, supermarkets, department stores and electronics chains in order to cut debt and raise money.

"We expect a listing to enable us to expand our business in an even more dynamic way and to strengthen the balance sheet of Metro Group at the same time," Chief Executive Olaf Koch said in a statement.

Reuters have reported that Metro's supervisory board gave the green light for the company to proceed with IPO preparations last week.

In related news, Metro Group rejected bids for its Vietnamese cash and carry business earlier this month.

"Our Vietnam business is not for sale," a Metro spokesman told thainews.com, adding Metro had rejected unspecified offers.

Dow Jones news agency, citing unnamed sources, reported that the CP Group, run by billionaire Dhanin Chearavanont, had remained interested in the business worth more than $500 million despite Metro's rejection of its initial offer.