June 14, 2018 / 4:39 PM / 2 months ago

CORRECTED-Ceconomy in talks to shed Russian business, take stake in M.video

(Corrects spelling of Safmar in first paragraph)

BERLIN, June 14 (Reuters) - German consumer electronics group Media-Saturn is in advanced talks with Russia’s Safmar about disposing of its loss-making business in the country and taking a 15 percent stake in Safmar’s M.video, parent firm Ceconomy said on Thursday.

Ceconomy said in a statement that if a deal is concluded Media-Saturn would pay about 258 million euros ($300 million) for the M.Video stake based on current exchange rates, although that could be cut depending on financial performance.

It said a non-binding agreement had been reached, adding that the transaction would entirely eliminate the operative losses of Media-Saturn’s Russian business, but have a one-time hit to Ceconomy’s net profit for the 2017/18 financial year of more than 100 million euros.

$1 = 0.8602 euros Reporting by Emma Thomasson; Editing by Elaine Hardcastle

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