Mr Price's R10bn European acquisition sees share price plunge 13%

MR PRICE Group’s share price plunged by over 13% on the JSE Wednesday after it announced the R10 billion acquisition of a store chain in Eastern Europe, marking the biggest cash value retailer in South Africa's entry into the European market.

- EDWARD WEST

The group plans to acquire NKD Group GmbH (NKD), a leading value retailer with 2 108 stores across Central and Eastern Europe, a move that brings Mr Price’s total store count to over 5,000.

NKD would be acquired from funds managed by TDR Capital, based in Germany. NKD sells affordable apparel and homeware and employs over 10 000 people. Mr Price said the deal is a “transformational step in the group’s long-term growth strategy.”

Mr Price Group's share price fell 13.46% to R181.76 in the afternoon. The price is also still well down from R291.71 a year ago.