Sonae SGPS on Wednesday announced the completion of the sale of its stake in Iberian Sports Retail Group (ISRG) to JD Sports Fashion, which was announced in July. In a statement to the CMVM, Sonae announced a gain of €168 million on the deal.
The added value, which will be recorded in Sonae’s consolidated results for the fourth quarter of this year, is just below the €175 million estimated on July 7. But the total value of the contribution is the same as announced: 300 million euros.
In the 12 months to June 30 this year, ISRG contributed €19 million to Sonae’s global EBITDA (earnings before interest, taxes, depreciation and amortisation).
But the Portuguese company recalls that “this process does not affect Sonae’s consolidated turnover or EBITDA, as ISRG is consolidated using the equity method in Sonae’s accounts.”
The sale comes after Sonae announced to the market in May this year that British group JD and Balaiko Firaja Invest had decided to dissolve their alliance in ISRG, which was created five years ago. But at the time of the announcement, it was not certain whether Sonae (30%) and Balaiko (20%) would buy JD’s position (50%) or vice versa.
Now ISRG’s future has been decided: JD will take over the entire retail store, with Sonae and Balaiko leaving the capital.
In a July statement, Sonai highlighted the “exceptional history of value creation of this partnership since its inception in 2018” and thanked “the management team and all ISRG employees for their unparalleled commitment and dedication to the development and sustainable growth of the company.”
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