>>>Ceconomy nears Russia deal, considers capital increase -sources - Reuters New

Ceconomy nears Russia deal, considers capital increase -sources - Reuters News

19-Jun-2018 10:05:21

By Alexander Hübner, Arno Schuetze and Matthias Inverardi

FRANKFURT/DUESSELDORF, June 19 (Reuters) - German consumer electronics group Ceconomy CECG.DE is expected to strike a deal within days to sell its loss-making Russian business to Safmar and take a 15 percent stake in Safmar's M.video MVID.MM, three people close to the matter said.

The group, which owns retail chain Media-Saturn, is considering a capital increase to finance the transaction and bolster capital cushions, the people said.

One of them said it was mulling a capital hike of roughly 10 percent, which would raise around 280 million euros at the company's current market value.

Ceconomy had no immediate comment.