Domino’s Pizza completes giveaway of Swedish business as it pays ‘buyer’ £1.8mln to take it

Domino’s Pizza Group PLC (LON:DOM) announced that the transaction to offload its Swedish arm PPS Foods completed on Sunday.

The fast-food chain said in March it would pay €2mln (£1.8mln) in cash to the ‘buyer’, a company called Eyja fjárfestingafélag that is controlled by Birgir Bieltvedt, the indirect owner of Domino’s franchisee DP Norway.

READ: Domino’s Pizza posts ‘exceptional’ trading over the new year period

Domino’s Sweden is the master franchisee in the Scandinavian country with 14 stores.

It made an underlying operating loss of £4mln in 2019 and the value of its gross assets were £9.8mln as at 30 June 2020. Funding previously allocated to it will be retained by the FTSE 250 group.

Domino’s said the disposal of the Swedish arm is part of its planned exit from all directly operated international markets so management can focus on the core UK and Ireland operations.

The sale of its Icelandic business, agreed for £13.7mln in March, is expected to complete this month.

In February last year Domino’s also agreed to give away its Norwegian subsidiary for £10mln.

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