WH Smith in secret talks to sell historic high street arm
WH Smith in secret talks to sell historic high street arm
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WH Smith is in secret talks to sell its entire high street business in Britain more than 230 years after it opened its first shop in central London. Sky News can exclusively reveal that the listed retail group, which has a market capitalisation of almost £1.5bn, has been in negotiations with a number of prospective buyers of the division for several weeks.
WH Smith could confirm the plan in a statement to the London Stock Exchange as early as next week. The company's high street arm comprises roughly 500 stores, employing about 5,000 people across the country. It is currently part of the same group as WH Smith's faster-growing, more profitable travel retail business which operates from airports, train stations and hospitals.
The travel retail business comprises 600 shops in the UK, roughly half of a global operation numbering about 1,200 travel retail outlets. Bankers at Greenhill have been appointed to run the sale process for the high street business, with a deal expected in the coming months.
The identities of the likely buyers were unclear on Saturday. Run by Carl Cowling, chief executive, the disposal of its high street arm and repositioning as a pure-play travel retail company is likely to be welcomed by investors, one analyst said this weekend.
WH Smith's high street division, which recorded flat operating profit of £32m last year, still largely sells greeting cards, books and stationery, while the travel arm has a wider offering of food and drink, and technology products. The travel business now accounts for 75% of the company's revenue, and 85% of profits, reflecting its higher margins.
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