Modern Times to Spin Off Internet Retailing Unit
Stock Chart for Modern Times Group AB (MTGA)
The Stockholm-based company intends to distribute shares in the unit, called CDON Group, to shareholders during the next six to nine months, it said in a statement. Some other companies have also approached MTG about buying the unit, and their approaches will be considered, it said.
CDON Group sells CDs, DVDs, books, toys and clothes through national Web sites in the Nordic region. The business accounted for 16 percent of MTG’s sales last year. Its net income excluding goodwill impairment charges doubled to 120 million kronor on net sales of 2.3 million kronor in 2009.
Handelsbanken Capital Markets is advising MTG on the demerger.
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