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Dixons Retail plc, Europe's leading specialist multi-channel electrical retailing and services company, announced that it has entered into an agreement to sell the ElectroWorld operations in Turkey to Bimeks, one of the leading electrical specialist retailers in Turkey. Following completion, which is expected to take place by the end of this calendar year, and which remains subject to certain conditions, Dixons Retail expects to receive a cash consideration of approximately £2 million over two years. For the year to April 2013, the assets being disposed of generated retail operating losses of £9 million and losses before tax of £13.8 million on turnover of £170.7 million and gross assets of £42.3 million from 32 stores (including 18 franchise stores).
Commenting on the disposal, Sebastian James, Dixons Retail Group Chief Executive, said:
"I am very pleased that we have achieved a further milestone in our strategic plan to focus on markets where we have leading positions. I have long believed that the Turkish electrical market has been ripe for consolidation and this agreement will enable ElectroWorld to flourish, as part of the Bimeks group in Turkey."
Commenting on the deal, Murat Akgiray, the Founder and Chairman of Bimeks, said:
"We are very pleased with this deal as the ElectroWorld business is a great fit with our stores and reinforces our market leading position in Turkey. Our multi-channel strategy is based on fast and sustainable growth with an evenly positioned geographical spread across Turkey. This transaction is a significant step in achieving our targets and driving the performance of Bimeks." Dixon's
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