Best Buy is considering options, including a sale or partnership, for its Chinese business, according to people familiar with the matter.
Shares rose 5 percent Wednesday to $30.56.
The Richfield-based electronics retailer is working with Bank of America Merrill Lynch on its options, according to the people. Some people said the Chinese business could fetch around $300 million, although one cautioned that it is too early in the process to set a firm price for the business.
The company has been evaluating its portfolio abroad, said a person familiar with the matter. Last year, Best Buy sold its 50 percent interest in Carphone Warehouse Group’s European business back to Carphone Warehouse in a deal valued at about $775 million.
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Best Buy currently has stores in the U.S., Canada, China and Mexico. In China, the company operates under the names Five Star and Best Buy Mobile. The company closed some large-format Five Star stores in China earlier this year but still runs about 190 locations across the country.
Best Buy recently singled out tough online competition in China for declining sales in its international division, which hurt the rest of the retail chain’s performance. The company has struggled to significantly improve sales in the U.S. this year.
A couple of years ago, Best Buy founder Richard Schulze proposed taking the company private. The company’s market capitalization is currently around $10 billion. .
Date: June 25, 2014