Fnac Falls in Paris Trading Debut After Spinoff From KeringAndrew Roberts
Groupe Fnac, the French DVD, books and video-games chain, fell on its first day of trading in Paris after being spun off from Gucci-owner Kering SA.
The shares, priced at 22 euros apiece, retreated to 19 euros today, giving the retailer a market value of 315.3 million euros ($416 million). Kering was seeking a valuation of about 400 million euros for Fnac, people familiar with the situation have said.
Kering spun off Fnac as part of a plan to focus on luxury and sporting goods, which are more profitable and have stronger growth prospects. The company has started talks with industrial buyers and private-equity funds over the sale of online and mail-order fashion retailer La Redoute, it said this week.
Fnac is midway through a turnaround plan to “stabilize” sales and profitability by 2016 as Europe’s debt crisis weighs on demand in the region and shopping for books, music, film, video-games and computer hardware shifts online, Finance Director Matthieu Malige said in an interview this week.
Fnac sales fell 2.4 percent to 4.1 billion euros in 2012. The retailer, founded in 1954, gets about 70 percent of revenue from France, which is mired in recession, and more than half from electronics. It had 170 stores as of Dec. 31, including in Spain, Portugal, Brazil, Belgium, Switzerland and Morocco.
The business, which had a net loss of 141.7 million euros last year, agreed to sell its Italian operations in November.