je.st
news
Carphone Warehouse to buy back Best Buy stake in business
2013-04-30 09:09:00| Telecompaper Headlines
(Telecompaper) Carphone Warehouse has agreed to buy back Best Buy's 50 percent share in their joint venture CPW Europe for GBP 471 million in cash and stock. Carphone sold the US retailer half its European business five years ago as part of plans to bring the Best Buy 'big box' stores to Europe and share its mobile retail knowledge with Best Buy in the US. The venture proved unsuccessful in Europe, Carphone sold its share in the US venture, and Best Buy is now exiting the European company. The two are also ending their Global Connect partnership and joint venture in China and Mexico. Carphone will pay an initial GBP 341 million cash and GBP 80 million in its own shares, as well as GBP 50 million in deferred cash payments on the first and second anniversaries of the transaction. To fund the cash portion of the deal, Carphone is selling 47.2 million shares, or a 9.99 percent stake in the group, on the open market. Best Buy said it will take a USD 200 million impairment charge on the activities for accumulated forex losses.
Tags: back
business
buy
warehouse
Category:Telecommunications