Kesa sells majority of Darty Telecoms business

Kesa Electricals has announced that its Darty France business has entered into a new commercial agreement with Bouygues Telecom, under which Bouygues will acquire 99.9 per cent of Darty Telecom.

Under the new €40m agreement, Darty will receive revenue streams based on the existing and future subscriber base and for the range of customer and management services that it will provide. The firms predict that these revenue streams, taken together with associated costs and reduced capital investment, will generate a retail profit and cash flow in excess of the current Darty Telecom performance.

Thierry Falque-Pierrotin, Kesa Electricals Chief Executive Officer, said: "Darty France has developed a successful telecoms offer with a reputation for excellent customer service. This new commercial agreement allows Darty to enhance its telecom offer building on the state of the art mobile and fixed line services of Bouygues."

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Darty Telecom comprises Darty Box and Darty Mobile which provide fixed line, broadband, TV and mobile to 340,000 subscribers. For the last full financial year ending April 30th 2011, Darty Telecom made a retail profit of €0.2m on revenue of €131.5m with gross assets of €78m and net assets of €43m.

The share price rose 6.34% to 59.55p by 08:55.

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