Dixons Carphone will gain a 3% share stake in German telecoms firm Drillisch. The UK retailer, which was formed under the merging of electrical chain Dixons and Carphone Wharehouse mobile group, will be selling its Deutschland business to Drillisch.
The phoning giant has revealed that its disposing development will not only push up share prices, but create potential further payments from Drillisch‘s surplus cash flow. The German group has a current stock market value of â‚¬2.1bn, and its values of the determined shares would be put up at around â‚¬60m.
Dixons Retail has strategised its rearrangements to help the company focus on engagement with different markets, which includes its market leadership positions. The retailer operates the Carphone brand in six countries, which includes 30 of its shops in Germany and a further 50 stores for the German operator Deutsche Telekom. Dixons merged with Carphone Warehouse last August as part of a £3.74bn deal and has new partnerships with Connected World Services division, which has helped them work with the ‘Internet of Things‘ market.
The group‘s Chief Executive Sebastian James comments that merging with the “highly professional” “successful” and “growing” German business will help to “secure the future of the significant remaining operations within The Phone House Deutschland through a partnership with Drillisch AG.” He adds, “At the same time, this transaction enables Drillisch to broaden its horizons into wholesale connection and dealer operations.
“We have also agreed a long-term service contract, for the provision of insurance, with scope to expand this into further services in future, through our Connected World Services division. We believe that this is the start of a strong, healthy and growing business together and I could not be more pleased to be working with this excellent team.”
The phone company hopes to connect to the ‘Internet of Things‘ market by offering consumers a more connected experience. It said that the spotlight market IoT could be worth up to £5bn to the company.
By Natalie Whitmore