Duesseldorf, Germany, 11 October 2019 - METRO AG today agreed to a transaction and strategic partnership with Wumei Technology Group (Wumei), whereby METRO AG will sell its entire stake in METRO China and receive a 20% stake in a resulting joint venture. The transaction values METRO China at an implied total enterprise value of €1.9 billion and EV/sales multiple of 0.7x based on its FY 2017/18 annual sales. With METRO China’s strongly positive earnings before interest, taxes, depreciation and amortization (EBITDA) of €153 million for FY 2017/18, the transaction achieves an EV/EBITDA multiple of 12x. Upon closing, METRO AG expects to receive net proceeds of more than €1 billion. The current minority shareholders in METRO China intend to divest their total 10% stake in a separate process.
For further information please see the attached press release.
