Carrefour‘s board has approved plans to spin off 100% of the company’s discount business, DIA, and 25% of the French retail giant’s property holdings unit, Carrefour Property.

The proposals will now be submitted for consideration to Carrefour’s shareholders and employee representative bodies, the company said yesterday (1 March).

Carrefour said the Dia spin-off would allow the group to focus on “fully developing” its namesake brand and its core activities. Meanwhile, the company argued that the move would enable Dia to have “greater flexibility” to manage its growth.

Carrefour, the world’s second-largest retailer, plans to distribute 100% of Dia shares to current Carrefour shareholders in the form of an extraordinary dividend. One Dia share would be allotted for each Carrefour share held, the company indicated. Dia shares would be listed in Madrid.

Meanwhile, the Carrefour Property spin-off would enable the company to unlock the “embedded value” of its property assets while also contributing to enhancing the “attractiveness and competitiveness” of its property estate, Carrefour said. The retailer’s French, Spanish and Italian real estate assets would be regrouped as a single entity – Carrefour Property. The new enterprise would be a European commercial real estate group, with a portfolio of assets with long-term leases on sites whose primary tenant is Carrefour.

Carrefour Property shares would be distributed in proportion to the number of Carrefour shares held, with the company retaining a 75% stake in the unit. Carrefour Property would remain listed on the Euronext exchange in Paris.

“The two transactions proposed today are a continuation of the strategy we have been conducting since 2009, and if approved, will provide Carrefour with new momentum. They aim to make the group more focused on its operational priorities while creating value for our shareholders,” Carrefour chief executive Lars Olofsson said.

These proposals will be put to a shareholder vote at Carrefour’s AGM on 21 June and the AGM of Carrefour Property on 23 June. If approved, dividends would be distributed in July.