Existing shareholders of the Norwegian business of the biggest pizza delivery company of the United Kingdom – Domino’s Pizza Group, will purchase the business, the company said on Thursday. This also marked the beginning of a possible string of sale of the loss-making overseas operations of the company.
The entire 71 per cent of the shareholding of the company in its Norwegian business will be sold to the company’s shareholders, it said, and added that in exchange, it will purchase the entire shareholding of the buyer in its Swedish operations along with a nominal amount of 1 Norwegian crown or £0.083.
This arrangement for the transfer of its shares of the Swedish business will allow Domino’s Pizza to have complete control over the Swedish operations which in turn will allow it to divest its business there.
“Now we have agreed the transaction for Norway, we will focus on progressing transactions for our businesses in Sweden, Switzerland and Iceland,” Chief Executive Officer David Wild said.
The British company which is a Franchise of the United States based Domino’s Pizza Inc has been struggling to fight off increasing losses and has been trying to cover the losses by selling off loss making businesses. The company has also failed to control costs of operations especially for its business in Norway where the company is in the process of converting the local pizza operator Dolly Dimple’s stores that it had acquired in 2017.
The company will pay up to 7 million pounds $9.08 million for the Norway business’ operating expenses in addition to funding its losses until the completion of the sale.
(Adapted from Reuters.com)