Co-operative Group Limited Co-op sells petrol forecourt estate to Asda (7209X)

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RNS Number : 7209X

Co-operative Group Limited

31 August 2022

Co-operative Group Limited

31 August 2022

Co-op sells petrol forecourt estate to Asda for GBP600 million

Sale of non-core petrol forecourt business enables Co-op to focus on core convenience proposition whilst significantly deleveraging and strengthening the Group's balance sheet

The Co-operative Group ("Co-op") has agreed to sell its petrol forecourt business to Asda for an enterprise value of GBP600 million*.

This transaction includes 129 petrol forecourt sites, spread across the UK and represents 5% of Co-op's retail estate of 2,564 stores.

With a primary focus on developing further its leading core convenience proposition, the proceeds from the sale of its relatively small non-core petrol forecourt business, will be used to:

-- Reinvest into Co-op's leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities

   --    Invest in Co-op's pricing, store operations, technology, and logistics 
   --    Support the reduction of Co-op's net debt 

Shirine Khoury-Haq, Chief Executive at the Co-op comments:

"This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.

"I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition."

The transaction is due to complete in Q4 2022.

ENDS

Co-op Media Contacts

Russ Brady, 07880 784442, [e-mail]

Cat Turner, 07834 090783, [e-mail]

Notes to Editors

* An enterprise value of approximately GBP600m, which will include a cash consideration of GBP438m and is also inclusive of IFRS 16 lease liabilities of approximately GBP162m. Final amount to be confirmed on completion.

Rothschild & Co acted as financial advisors to the Co-op, with Addleshaw Goddard acting as principal legal advisors.

About the Co-op

Co-op is one of the world's largest consumer co-operatives with interests across food, funerals, insurance and legal services. Owned by millions of UK consumers, the Co-op operates over 2,500 food stores, over 800 funeral homes and provides products to over 5,000 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.

Employing almost 60,000 people, the Co-op has an annual turnover of over GBP11billion and is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members' needs and stand up for the things they believe in.

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August 31, 2022 02:01 ET (06:01 GMT)