News Column

PRESS: Home Retail Considering Homebase Spin Off - Mail On Sunday

July 27, 2014

Samuel Agini

LONDON (Alliance News) - Home Retail Group PLC is considering a plan to spin off its GBP1.5?billion DIY chain Homebase, the Mail On Sunday reported.

According to the report, the possibility of a spin-off is being considered by new Chief Executive John Walden so that the group can focus on developing its more prosperous Argos chain.

Citing unnamed City sources, the newspaper said that Home Retail had considered selling Homebase previously, but "the option has come 'into sharper focus' recently following the commencement of a company-wide strategic review by Walden and signs of stronger sales and profitability at Homebase."

A final decision could be made in the coming weeks, The Mail on Sunday reported, citing several unnamed sources.

The paper also said that the most likely option is for a sale to a private equity firm rather than floating it on the stock market.

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Source: Alliance News

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