WH Smith in £47.5m Asia sell-off

TROUBLED retailer WH Smith, being stalked by private equity group Permira, has offloaded its Asia-Pacific businesses for A$115m (£47.5m).

The sale to Pacific Equity Partners (PEP), an Australian private equity group, had been well flagged in advance although its conclusion is much more rapid than expected.

WH Smith finance director John Warren said at the group's results presentation yesterday that he expected to announce a sale 'by the summer'.

PEP, among the largest private-equity groups in Australia and New Zealand, said it would keep the existing management in place.

The assets on the block include two chains that WH Smith bought in 2001 for £30m in cash, the Angus & Robertson bookstores in Australia and Whitcoulls & Bennets business in New Zealand.

In addition there are WH Smith branded stores in Singapore and Hong Kong. The Asia-Pacific operations had profits of £5m in the year to last August.

WH Smith executives had opted for a sale as the far-flung businesses were seen as a distraction from the central task of revitalising the company's flagging domestic chain.

Chief executive Kate Swann was drafted in last November to revive WH Smith's fortunes, but her turnaround plan has been interrupted by the approach from Permira, which has tentatively offered £940m for the company.