WH Smith finds buyer for Changi business - UPDATED

Print Article E-Mail Article

The UK group continues its divestment of overseas assets with the prospective sale of its Singapore outlets to a Hachette joint venture

TimesNewsLink, a joint venture between Times The Bookshop and Hachette Distribution Services (40% owner of Australian firm NewsLink), has entered into a conditional agreement to acquire WH Smith six outlets at Singapore Changi airport. The deal enhances Times NewsLink's existing presence at Changi, where it was awarded the principal bookstore concession in 2000, and doubles the group's store portfolio.

The Straits Times reported that the deal was valued at $800,000 plus the value of WH Smith's stock at the time of completion. The stock is currently valued at around $1.5m. The sale also includes two high street outlets, in Singapore's OUB Centre and Cold Storage Jelita shopping centre. The joint venture is expected to retain most of the existing WH Smith staff, and will rebrand the outlets after the deal is completed.

The proposed acquisition follows a year of divestment for the UK news and books retailer after it announced it would focus on its home market. The group sold its 123 US airport outlets to Hudson Group late last year and last month Pacific Equity Partners, a private equity group based in Sydney, bought its Asia/Pacific business minus the Singapore stores for £47m.
 
A TimesNewsLink spokesperson said: ?We believe this acquisition represents an exceptional opportunity to expand our business in Singapore and to leverage significant operational synergies.?