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Last Updated: Tuesday, 17 June, 2003, 06:20 GMT 07:20 UK
Comet demerger unveiled
Comet store, Hull
Retail group Kingfisher has unveiled plans to demerge its electrical retail arm Kesa, which includes the Comet chain.

Kingfisher shareholders will receive one Kesa share for each Kingfisher share they hold and the stock will be listed in London and Paris.

The retail giant wants to split from Kesa so it can concentrate on the faster-growing home improvements market, where it owns the B&Q chain.

Kesa, which includes French chains Darty and BUT, is Europe's third-largest electricals retailer.

Weak demand

Kingfisher has set a date of July 7 for the demerger.

It said the move marked the final step in its strategic overhaul, which has already seen the demerger of Woolworths and Superdrug.

Analysts expect Kesa to have a market value of between 800m and 1.3bn, placing it in London's FTSE 250 Index.

Kesa's sales for the year to 1 February were more than 3.4bn, with retail profits of 193.3m.

The new company will be led by British chairman David Newlands and French chief executive Jean-Noel Labroue.

Kesa has 790 stores in seven countries, but it will generate 75% of its profits in France.

Some analysts believe Kesa may struggle to find its feet mainly because of weak consumer confidence in France.




SEE ALSO:
DIY builds Kingfisher profits
19 Mar 03  |  Business
DIY boom boosts Kingfisher
04 Jun 03  |  Business


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