February 13, 2020 / 9:56 AM / 6 days ago

UK's Domino's finds buyers for Norway business

FILE PHOTO: A Domino's Pizza restaurant is seen in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson

(Reuters) - Britain’s biggest pizza delivery company Domino’s Pizza Group (DOM.L) said on Thursday it would sell its Norwegian business to existing minority shareholders of the business, kicking off the sale of its loss-making overseas operations.

The company said it will sell its entire 71% shareholding in the Norway business in return for the buyers’ entire stake in its Swedish operations and a nominal amount of 1 Norwegian crown ($0.1081).

The transfer of shares will give Domino’s Pizza Group full ownership of its Swedish operations, enabling it to sell its business there.

“Now we have agreed the transaction for Norway, we will focus on progressing transactions for our businesses in Sweden, Switzerland and Iceland,” Chief Executive Officer David Wild said.

The company, a franchise of U.S.-based Domino’s Pizza Inc (DPZ.N), has been trying to offload its international markets as it struggled to control costs, especially in Norway, where it was converting the local pizza operator Dolly Dimple’s stores it bought in 2017.

The company will pay up to 7 million pounds ($9.08 million)for the Norway business’ operating expenses in addition to funding its losses until the completion of the sale.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Aditya Soni

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