RPT-UPDATE 1-UK's DSG sells Electro World Hungary for 1 euro

Tue May 19, 2009 2:02pm EDT

(Repeats with no changes to text)

* Sale of nine stores to EW Electro Retail Ltd

* To keep Electro World stores in Czech Republic, Slovakia

* Electro World stores in Poland under review (Adds detail)

LONDON, May 19 (Reuters) - DSG International Plc DSGI.L, Europe's second-biggest electrical goods retailer, said on Tuesday it had agreed to sell its nine Electro World stores in Hungary to EW Electro Retail Ltd for 1 euro.

DSG, which runs the Currys and PC World chains in Britain, said it was keeping 16 Electro World stores in the Czech Republic and three in Slovakia, but eight stores in Poland remained under review.

Electro World made an underlying operating loss of 6.8 million pounds ($10.4 million) in central Europe in the year ended May 3, 2008, DSG said.

DSG, which has been hit hard by a downturn in consumer spending across Europe, announced a fully underwritten 311 million pound cash call last month to accelerate its store revamp plan and strengthen its finances. [ID:nLU357733] (Reporting by Mark Potter; Editing by David Holmes) ($1=.6516 Pound)

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