Currys PLC (LSE:CURY) has agreed terms for the sale of its Greek and Cypriot business Kotsovolos for €200 million (£175 million).
Kotsovolos parent Dixons South East Europe will be sold in its entirety to Greek energy firm Public Power Corporation SA, Currys updated on Friday.
Selling the business will simplify Currys’ structure, it said, allowing more of a focus to be placed on the larger markets of the UK and Ireland, alongside the Nordic region.
"This proposed sale of Kotsovolos is an excellent outcome for Currys and for our shareholders,” chief executive Alex Baldock said.
“It recognises Kotsovolos's value and accelerates its realisation.”
Net cash proceeds from the deal are anticipated to be closer to €179 million after transaction and separation costs, Currys continued, pointing out that this represents a premium to the share price valuation.
“The board believes that significantly greater value can be realised for shareholders from the disposal, when compared to retaining Kotsovolos,” the FTSE 250 retailer said.
The funds will be used to reduce net debt, before discussions are held with pension trustees on future contributions, Currys added.
“Reducing indebtedness may also provide, at the appropriate time, the group with greater flexibility to invest to grow the business, after which Currys will also explore the potential to return any surplus capital to shareholders,” it said.
The sale of Kotsovolos is expected to be completed in the early stages of next year, subject to shareholder and regulatory approval.