PARIS – Carrefour SA, the world’s second-largest retailer behind Wal-Mart Stores Inc., on Monday confirmed that it was considering spinning off some of its assets in order to boost its valuation.
“As part of its strategy to maximize its performance and the valuation of its assets, Carrefour confirms that it is studying different projects that could lead to the listing of certain of these assets. To date, no decision has been taken,” the retailer said in a statement.
Carrefour declined to give specifics, but said it planned to retain control of Carrefour Property. “As soon as the studies are completed, they will be submitted for review to the board of directors,” it added.
Speculation that Carrefour might be looking to sell or spin off assets has intensified since the group rattled markets last year by issuing a profit warning and restating one-off charges in Brazil resulting from an audit.
Analysts believe the company is facing pressure from its largest investor, Blue Capital, the investment consortium of LVMH Moët Hennessy Louis Vuitton chief Bernard Arnault and investment firm Colony Capital that holds 13.55 percent of Carrefour’s capital.
“Shares in Carrefour closed up 5.33 percent at 35.78 euros, or $48.67 at current exchange rates, on the Paris stock exchange.”