Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Sale of Austria's BauMax under way - report

Published 04/12/2014, 08:46
Updated 04/12/2014, 08:50
Sale of Austria's BauMax under way - report

VIENNA (Reuters) - The sale of Austrian home-improvements store chain BauMax is under way, with a deadline for binding offers ending on Dec. 18, Austrian magazine News said on Thursday, citing documents from investment bank Mediobanca.

BauMax, which had overextended itself with a push into Eastern Europe and Turkey, had said in late November that there was no sale process. It was not immediately available for comment.

The sale focuses on BauMax core countries Austria, the Czech Republic and Slovakia, where it generates 70 percent, or 745 million euros (£585.5 million), of its revenues, News said.

Any deal would need a green light from BauMax's creditor banks, including Raiffeisen (VI:RBIV), Erste Group (VI:ERST) and Bank Austria (MI:CRDI).

News put the cost for banks at a worst-case 400 million euros should BauMax's loans go bad, and quoted an "expert involved" in the process as saying a "realistic" writedown was more toward 250-270 million.

(Reporting By Angelika Gruber, Writing by Shadia Nasralla; Editing by Michael Shields)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.