The board of French retailer Carrefour has agreed to the spin-off of Dia, the group's discount chain, in addition to 25 per cent of its property unit, as it looks to revive its share price, Reuters has reported.
The Dia stores, 60 per cent of which are located in France and Spain, accounted for 11 per cent of Carrefour's 2009 sales and 7 per cent of its profits.
Carrefour chief executive Lars Olofsson said that the aim of the spin-offs was to 'make the group more focused on its operational priorities while creating value for its shareholders' and would give the retailer 'new momentum'.
However, some analysts have argued that such a move would reduce the group's control over its property assets and have doubted the impact on its valuation and share price.
'In our view, true value creation for Carrefour will only be achieved via long-term sustainable improvement of the underlying business,' said Credit Suisse.
Analysts value Dia at €3.5bn-€4bn.
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