10 October 2008 - Woolworths Group plc announces that its subsidiary Woolworths plc has reached agreement to dispose of the leases on up to 9 stores to Tesco Stores Limited for a consideration of up to £9 million.
The transfers of the individual leases are subject to individual conditions and, subject to fulfilment of these conditions, would be expected to occur on a lease by lease basis over the next 6 months. The proceeds from the disposal, which will be received in cash at completion, will be used to reduce Group borrowings.
Assuming all 9 leases are transferred this would generate a profit of approximately £7 million which will be disclosed as part of the operating profit from property transactions, their net asset value being approximately £1 million.