June 20, 2018 / 6:54 AM / 10 months ago

Ceconomy strikes Russia deal with Safmar

FRANKFURT, June 20 (Reuters) - German consumer electronics group Ceconomy said on Wednesday it had agreed to sell its loss-making Russian business to Russia’s Safmar group and take a 15 percent stake in Safmar’s M.video.

Ceconomy, which owns retail chain Media-Saturn and which hopes to improve its performance in Russia through exposure to fast-growing consumer goods retailer M.video, will pay around 258 million euros ($299 million) based on today’s exchange rate.

On Tuesday, Ceconomy had said it expected to strike such a deal with Safmar and that it was considering a capital increase to finance the transaction, which pushed its shares down by more than 10 percent. ($1 = 0.8639 euros) (Reporting by Maria Sheahan Editing by Douglas Busvine)

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