EU and US could reach trade deal this weekend - Reuters
Investing.com -- WH Smith (LON:SMWH) shares fell more than 5% Monday after the company revised the financial terms of its planned sale of the U.K. High Street business to Modella, lowering the expected proceeds from £52 million to a potential maximum of £40 million.
The retailer said it completed the transaction with an upfront payment of £10 million and could receive up to £30 million in additional proceeds through August 2026, subject to business performance and asset realization.
The changes follow a period of softer trading and increased caution from stakeholders, which prompted Modella to renegotiate terms before completion, according to WH Smith.
The High Street unit, excluding online operations like funkypigeon.com, had originally been expected to bring in higher returns.
WH Smith said the revised deal was the best option available to ensure the sale went through, citing its responsibility to shareholders.
The company added that its Travel division is trading in line with expectations as it enters the peak summer period. WH Smith now expects headline net debt to be about £425 million.