El Corte Inglés buys back half of its shareholder Primefin's equity interest

news June 2022 Press Release

What: El Corte Inglés and its shareholder, Primefin, entered into an agreement whereby the retail company will repurchase half of Primefin shareholding, which until today stood at 11.07%.

Why it is important: The agreement reached between the parties values El Corte Inglés at around €7 billion, in line with recent M&A transactions, and acknowledges Primefin’s contractual rights.

The repurchase of the shares held by Primefin, obtained because of a loan made in the past, falls under the scope of the company’s financial streamlining process.

The transaction will be financed using available funds and will not increase debt. It comes just as El Corte Inglés has bolstered its financial position to present the lowest level of debt in 15 years. The Group will use the 5.53% stake bought back to reinforce its treasury stock.

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