Steinhoff to sell its European Conforama France business to Mobilux
The disposal will secure the future of Conforama France by releasing it from its liabilities.
Steinhoff has announced that it will be selling its stake in one of its largest European subsidiaries, Conforama France, to another French retailer.
Steinhoff said in a statement that it had agreed to dispose of its shares in Conforama France together with certain related trademarks and domain names, to Mobilux for a “nominal sum”.
According to the statement, the disposal will secure the future of Conforama France, release the group from its liabilities in respect of that business and generate cash to reduce the current debt held by the company.
As part of the transaction, Steinhoff will also be selling 18 real estate properties currently occupied by Conforama France for approximately €70 million. Conforama will also receive new funding in two tranches as part of the agreement.
After the agreement is signed, Conforama France will receive €100 million in the form of a state-guaranteed loan, and €50 million from Mobilux.
“This new funding will enable Conforama France to finalise its restructuring project and support an ambitious post-Covid-19 recovery plan, while honouring its commitments to suppliers and partners," the statement read.
At the closing date of the agreement, Conforama France will benefit from a second state-guaranteed loan of €200 million, as well as a €200 million capital increase subscribed by Mobilux – which includes the €50 million received at signature.
It expects the transaction to close by the end of September 2020.