Marks & Spencer: market sanctions joint venture with Ocado

(CercleFinance.com) - The Marks & Spencer share is tumbling 8.
3% in London this morning, with the UK department store chain having announced the creation of a 50-50 joint venture with Ocado, an online grocery retailer in the UK.

M&S will therefore acquire a 50% stake in Ocado's distribution business in the UK for 750 million pounds, including a deferred payment of up to 187.5 million pounds plus interest.

To fund this deal, the company intends to proceed with a rights issue for 600 million pounds and will adjust its dividend by 40%, hence setting its final dividend payment for 2018-19 at 7.1 pence per share.



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