DUESSELDORF (Reuters) - The owners of a proposed German department store chain formed by the merger of Karstadt and Kaufhof (HBC.TO), have agreed to provide the company with a cash injection of 400 million euros ($464 million), a magazine reported on Monday.
Canada’s Hudson’s Bay (HBC), which bought Kaufhof in 2015, has agreed to a joint venture with Austria’s Signa Holding, which owns Karstadt and will hold around 51 percent of the new business, sources had told Reuters last week.
German business magazine Wirtschafts Woche reported that the owners of the merged company have agreed to inject the cash, with HBC and Signa due to provide 100 million euros each, citing people close to the negotiations.
The additional 200 million euros will come from the sale of two properties currently owned by a consortium led by Hudson’s Bay, Wirtschafts Woche said.
HBC did not immediately comment on the report while a spokesman for Signa could not be reached.
($1 = 0.8619 euros)
Reporting by Matthias Inverardi; writing by Thomas Seythal; editing by Emma Thomasson and David Evans