B&M European Value Retail has exchanged contracts for the sale of 80% stake in J.A. Woll-Handels. Jawoll, together with its wholly-owned subsidiary, Jawoll Vertriebs GmbH, is a general merchandise discount retailer with 89 stores in the North-West of Germany. Subject to completion, the total consideration payable to the Group for the transaction is €12,5m which is to be paid in cash.
The total consideration payable to the Group comprises:
- €2,5m as part repayment of an intra-group trading account balance of €5,6m owed by Jawoll to the Group with the remaining balance having been waived;
- €10m part repayment of loans made by the Group to Jawoll of €42,9m (including interest) with the balance of those loans having been waived; and
- a nominal sum of €1,000 for the shares.
Accordingly, the transaction will not have a material impact on the Group's leverage.