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Signa acquires 75.1% stake in Karstadt’s sports, luxury division

RBR Staff Writer Published 18 September 2013

Austria-based real-estate investment company Signa has acquired 75.1% stake in German department store chain Karstadt’s sports business and luxury division, while the remaining 24.9% will be retained by Berggruen Holdings.

As part of the deal, Signa will take over three Karstadt's stores, including the KaDeWe department store in Berlin and its sports division, made up of 28 sports stores.

Karstadt operates in three different units - premium business, sports stores and regular department stores.

German investor Nicolas Berggruen, who rescued Karstadt from insolvency in 2010, will retain the remaining 24.9% equity in the units and will keep 100% of Karstadt's remaining 83 department stores.

"This is my contribution to the group's further recovery and my clear commitment to the department store as a business model," Berggruen said.

The sale, which is valued for €300m, is expected to strengthen Signa's portfolio. Both the companies have agreed that the proceeds from the sale will be used within the Karstadt group.