By Pietro Lombardi 
 

Ceconomy AG (CEC.XE) has agreed to sell its roughly 9% stake in METRO AG (B4B.XE), it said Thursday.

The company has signed a binding agreement with EP Global Commerce II GmbH, under which the buyer will first acquire a roughly 3.6% stake from Ceconomy. EP Global is indirectly owned by entrepreneurs Daniel Kretinsky and Patrik Tkac.

"In a second step, the parties agreed on put/call options regarding the transfer of the remaining approximately 5.4%, which are expected to be exercised within nine months," Ceconomy said.

Financial details of the deal weren't disclosed.

"This transaction is good news for Ceconomy and our shareholders," Chief Financial Officer Mark Frese said in a statement.

"We strengthen our balance sheet through the inflow of liquid funds and eliminate the financial risks from this equity stake," he added.

The deal is subject to approval from German competition authorities.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

September 20, 2018 10:32 ET (14:32 GMT)