SPAR coughs up R2.7 billion to exit Europe business

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SPAR is selling its Polish business, but it will have to fork out roughly R2.7 billion as part of the deal.

SPAR South Africa is selling its Polish business for R185 million as part of its turnaround plan but will need to pay R2.7 billion to recapitalise the business.The deal removes the loss-making business from the balance sheet and allows SPAR to focus resources on its core business in South Africa and focus on new growth opportunities.

“We are pleased to have been able to structure this sale in the agreed timeframe and are ready to take our own business to the next level by focusing on our Southern African strengths as the heart of our business,” said Swartz. “Our journey into Poland is coming to an end. However, this deal further solidifies our renewed strategic intent. Our continued focus is on harnessing our strengths, driving efficiencies, profitability and excellence,” said Swartz.Although the South African retailer is selling its Polish business, Bloomberg reported that the group could be considering an offer to acquire cash-strapped West Pack Lifestyle.

 

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