Oct 10, 2012
PPR to list Fnac retail unit in 2013
Oct 10, 2012
PARIS - French retail and luxury group PPR confirmed plans on Tuesday to spin off its Fnac unit and seek a separate listing for the CD and books retailer in 2013 as part of long-running efforts to recentre its business on luxury and sports brands.
Having failed to find a buyer for Fnac, PPR is keen to offload the struggling retailer at a time when it is starting to reap benefits from a restructuring and efforts to revamp its operations.
While PPR is keen to present Fnac as a turnaround story to shareholders, some analysts said PPR was also looking to separate the retailer from its accounts at a time when consumption trends in France were worsening.
"There is a risk that Fnac sales continue to fall in the months to come," one Paris-based analyst said.
PPR, which owns luxury brands Gucci and Yves Saint Laurent and sports brands Puma and Volcom, presented the project to Fnac workers earlier on Tuesday, union sources said.
The transaction would have to be approved at PPR's next annual general meeting in the spring.
PPR shares closed 0.8 percent higher at 125.10 euros for a rise of about 13 percent this year.
The company added that the process for the disposal of its Redcats mail order business was under way and that all options were being considered.
"The whole process will take several months and announcements are likely to be issued in the coming weeks," PPR said.
Chief Executive Francois-Henri Pinault said last week that PPR expected to give an update on the Redcats sale before it publishes third-quarter sales on Oct. 25. (Editing by James Regan)
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