Africa News Service

Metcash Plans A Purchase.

Johannesburg, Jun 07, 2002

The board of Metcash Trading, the 64%-held Australian subsidiary of Metro Cash & Carry (Metcash), is planning to acquire a fourth business division in the Asia Pacific region to add further diversity to earnings.

Metcash Trading CEO Andrew Reitzer told an Investment Analysts' Society presentation in Cape Town yesterday that Metcash Trading's three existing businesses in Australia Independent Grocers of Australia Distribution, Campbells Cash & Carry and Australian Liquor Marketers were performing well and generating strong cash flow.

In the next three to four years Metcash Trading would like to add a fourth "business pillar" that could be earnings-a-share neutral in the first and second year after acquisition, and a strong contributor from the third and fourth years onwards. …

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