German electronics retailer Ceconomy AG said June 14 that its Media-Saturn Holding GmbH unit was in advanced talks to sell its loss-making Russian business to Safmar Group and to acquire a 15% stake in Safmar's Russian consumer electronics retailer M.Video PJSC.
Under the terms of a proposed deal, Media-Saturn would pay about €258 million for the M.Video stake, although that amount could be reduced by up to €86 million, depending on "the future development of certain financial ratios" of M.Video.
In a statement, Media-Saturn said a nonbinding agreement had been reached. It added that while a transaction would completely remove from Media-Saturn the operational losses of MediaMarkt, its Russian business, the deal would have a one-time impact on Ceconomy's net profit for fiscal year 2017/18 of a low three-digit million-euro figure.
Ceconomy said it was uncertain whether a binding deal would be pursued.
Ceconomy is the demerged consumer electronics retail arm of Metro AG.