RETAIL HOLDINGS N.V. ANNOUNCES AFFILIATE SALE

Retail Holdings N.V.

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Rhea-AI Summary

Retail Holdings N.V. (RHDGF) announced the sale of its 57.6% stake in Retail Holdings (India) BV to two UK private equity investors for approximately $5.0 million. This transaction is part of the company’s strategy to maximize asset value and distribute funds to shareholders. Post-sale, Retail Holdings will have no operating assets, with 54.1% of the sale proceeds benefiting its shareholders. The deal is expected to close by year-end, enhancing Singer India’s growth potential through the new investors' expertise.

Positive

Sale of 57.6% stake in Retail Holdings (India) BV for approximately $5.0 million.
54.1% of proceeds are attributable to shareholders.
Transaction aligns with asset monetization strategy.

Negative

Post-sale, Retail Holdings will have no remaining operating assets.

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News Market Reaction – RHDGF

The recorded move for RHDGF in the trading session of this news was +3.25%.

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12/20/2021 - 09:30 AM

WILLEMSTAD, Curaçao, Dec. 20, 2021 /PRNewswire/ -- Retail Holdings N.V. (Symbol: RHDGF) -- Retail Holdings N.V. ("Retail Holdings", together with its subsidiaries and affiliates, the "Company") announced that it has entered into agreements to sell its remaining approximately 57.6% equity interest in its affiliate, Retail Holdings (India) BV ("India BV"), to two UK private equity investors (the "Investors"). India B.V.'s assets include an approximately 57.7% equity stake in Singer India Limited ("Singer India"), an Indian public company. Singer India is primarily a wholesale distributor and manufacturer of sewing products and a wholesale distributor of home appliances throughout India. Following closing, Singer India will be owned 42.4% by the India public, 24.3% by an existing private international investor, and 19.1 % and 14.2%, respectively, by the two new Investors.

The two transactions are expected to close before year end. The cash consideration to be received, net of liabilities to be assumed, is approximately $5.0 million. Approximately 54.1% of this amount is attributable to the Retail Holdings shareholders.

Commenting on the transaction, Stephen H. Goodman, the Company's Chairman, President and CEO, noted, "This sale is the final step in successful execution of Retail Holdings strategy to maximize and, ultimately, to monetize the value of its assets, with the objective to divest these assets and distribute the resulting funds to shareholders. Following the sale, Retail Holdings will have no remaining operating assets. A decision as to the disposition of the Company's cash, including the proceeds of this sale, and of the Company's remaining financial assets, will be made and announced by late January.

Mr. Goodman continued, "The Singer India business should benefit significantly from the relationship with the Investors, who have extensive experience in successfully growing and improving the profitability of operations including in developing markets.

Additional financial and other information about Retail Holdings N.V. may be found at the Corporate/Investor section of the Company's website: www.retailholdings.com. Price quotations for the Company's shares are available on the "Pink Sheets" quotation services under the symbol "RHDGF".

View original content:https://www.prnewswire.com/news-releases/retail-holdings-nv-announces-affiliate-sale-301448228.html

SOURCE Retail Holdings N.V.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Retail Holdings N.V.'s recent transaction involving Singer India Limited?

Retail Holdings N.V. announced the sale of its 57.6% equity interest in Retail Holdings (India) BV to UK private equity investors for approximately $5.0 million.

How will the sale of Retail Holdings (India) BV impact shareholders?

The sale will benefit shareholders as approximately 54.1% of the proceeds will be distributed to them.

When is the expected closing date for the sale of Retail Holdings (India) BV?

The transaction is expected to close before the end of the year.

What will happen to Retail Holdings N.V. after the sale?

After the sale, Retail Holdings will have no remaining operating assets and will focus on the disposition of cash and remaining financial assets.

What is the significance of the new investors for Singer India?

The new investors have extensive experience in growing businesses, which is expected to benefit the profitability of Singer India.

RETAIL HOLDINGS N.V. ANNOUNCES AFFILIATE SALE