Morrisons Confirms Sales Of Fresh Direct Stake

Morrisons has confirmed the sale of its 10% stake in Fresh Direct, the US online food retailer.

Fresh Direct serves the northeastern US states of New York, New Jersey and Connecticut.  Morrisons had picked up the stake in 2011 for £31m, as part of a strategy to move into the online grocery market. However, in March 2014, Morrisons said it planned to sell the same, as it looked to exit non-core business.

Morrisons said the deal is valued at £45m in cash, giving it a profit on its initial investment.  While it did not name the buyer, various reports claimed that Fresh Direct itself has bought back the same.

NAM Implication:
  • Opportunities for NAMs  to clarify definition of core business as a basis for next buyer meeting?