US retail giant Safeway has revealed it is in talks over a possible sale of the company.
Safeway said today (19 February) said the discussions are “ongoing” but did not disclose the name of the interested party.
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“Although the discussions are ongoing, the company has not reached an agreement on a transaction, and there can be no assurance that these discussions will lead to an agreement or a completed transaction,” Safeway said. “The company will not comment further on these discussions at this time.”
Reuters reported private-equity firm Capital Management is in talks with Safeway about a possible deal.
Safeway’s shares were up 3.58% at US$35.85 in after-hours trading.
Meanwhile, Safeway said it is looking to sell its 49% stake in Mexican retailer Casa de Ley.
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By GlobalDataSafeway has also decided to distribute the remaining 37.8m shares it owns of prepaid payment provider Blackhawk Network Holdings, around 72.2% of the outstanding shares in the company to its stockholders.
The grocer also reported net earnings from continuing operations of US$100m, or $0.35 per diluted share, for the fourth quarter of 2013, compared to $170.7m ($0.71 per diluted share) for the fourth quarter of 2012.
The fourth quarter of 2013 included a $57.4m loss on foreign currency translation, a $30.0m loss from the impairment of notes receivable and a $9.7m gain from the reduction of a contingent consideration related to Blackhawk’s acquisition of Cardpool.
The fourth quarter of 2012 includes a $46.5m gain from legal settlements.
Sales and other revenue was $11.3bn, compared to $11.2bn a year earlier. Identical-store sales, excluding fuel, were up 1.6%.
