DFI Retail Group is selling its network of Cold Storage and Giant supermarkets in Singapore for $125 million to a Malaysian company Macrovalue.
As part of the deal, Macrovalue will take over 48 Cold Storage stores, 41 Giant stores and also two distribution centres.
Following the sale, DFI will focus on its chain of Guardian and 7-Eleven businesses.
DFI shares extended gains today after the announcement was made during the lunch break. As at 2.30 pm DFI shares were up 12 cents, or 5.33% to trade at U$2.37.
“In today’s environment of rising food costs and inflation, it is essential to leverage scale and operational efficiencies to protect customers from price volatility while maintaining quality and service standard,” says DFI's CEO Scott Price.
The deal is expected to be completed in the second half this year.
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“We firmly believe that Macrovalue is ideally positioned to drive the next phase of growth for the Singapore Food business with its expanded scale and procurement power across both Malaysia and Singapore,” says Price.
Macrovalue is described as a special purpose vehicle equally owned by Malaysian businessman and entrepreneur Andrew Lim and Gary Yap.
