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BRIEF-Home Retail confirms talks to sell Homebase to Wesfarmers

Published 14/01/2016, 05:34 am
© Reuters.  BRIEF-Home Retail confirms talks to sell Homebase to Wesfarmers
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Jan 13 (Reuters) - Home Retail Group Plc HOME.L :

* Response to media speculation

* Confirms that it is in advanced discussions for potential sale of Homebase to Wesfarmers Limited for a cash consideration of 340 million stg

* Home Retail Group and Wesfarmers began discussions in September, due diligence commenced under a confidentiality agreement in October

* Wesfarmers provided group with a firm offer letter in November

* Under terms being discussed, Wesfarmers would acquire entire Homebase business, including all stores and dedicated distribution centres

* Product brands owned by group, like Habitat, Schrieber and Hygena will be excluded from sale, but licensed for use by Homebase for 1 year

* Discussions are ongoing and there can be no certainty that a transaction will be agreed

* Board believes sale proceeds of 340 mln stg provide good value for shareholders, recognising improvements made in Homebase business Source text for Eikon: ID:nRSM8105La Further company coverage: HOME.L

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