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."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
NR
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
