Retail Holdings N.V. Announces Agreement to Sell Majority Stake in Singer Bangladesh

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Nov 04, 2010, 11:29 ET

WILLEMSTAD, Curacao, Nov. 4, 2010 /PRNewswire-FirstCall/ --

Retail Holdings N.V. (Symbol: RHDGF)

Retail Holdings N.V. ("Retail Holdings", together with its subsidiaries and affiliates, the "Company") announced today that the Company has entered into a definitive agreement to place with investors in Bangladesh a majority stake in the Company's Bangladesh subsidiary, Singer Bangladesh Limited. Closing of the transaction is subject to a number of conditions precedent including obtaining government approvals. As a result of this transaction, and related developments including attribution to minority shareholders of Singer Asia Limited, the net, after-tax profit attributable to Retail Holdings' shareholders is projected to be approximately $25.6 million and the net, after-tax cash consideration attributable to Retail Holdings' shareholders is projected to be approximately $50.6 million, equivalent to approximately $4.83 per share and $9.54 per share, respectively.

Singer Bangladesh had revenues of $63.4 million and net income of $5.7 million in 2009. Singer Bangladesh revenues in 2010 are projected to be somewhat higher than in the prior year while net earnings will be substantially greater, reflecting the sale by Singer Bangladesh earlier in the year of its 35.6% interest in International Leasing and Financial Services Ltd. and the resulting one-time gain.

Commenting on the placement, Stephen H. Goodman, Retail Holdings' Chairman, President and CEO, noted, "I am extremely pleased by the opportunity the Company has to place majority control of its Bangladesh operation with a distinguished group of Bangladesh investors on terms that are attractive to Retail Holdings' shareholders. I anticipate that with majority ownership in local hands and the Company's existing, excellent management continuing in place, revenue and profit growth at Singer Bangladesh will accelerate, building on the strong performance over the last several years."

About Retail Holdings

The Company holds three principal assets: 1) a 56.2% equity interest in Singer Asia, a distributor of consumer durable products in Bangladesh, India, Pakistan, Sri Lanka and Thailand with consumer credit and other financial services available to qualified customers; 2) seller notes, arising from the sale of the Singer worldwide sewing business and trademark in 2004; and 3) cash and cash equivalents. The Company has no operating activities other than those carried out through Singer Asia.

Retail Holdings is a Curacao public company, which is the successor company to the Singer Company N.V. and its predecessor companies. Retail Holdings, formerly known as Singer N.V., changed its name to Retail Holdings N.V. following the sale of the sewing business and the Singer trademark. Price quotations for the Retail Holdings' shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF".

Additional financial and other information about the Company including: a copy of Retail Holdings' audited consolidated financial statements for the twelve months ended December 31, 2009, and all prior statements since September 2000, together with Auditor's Reports thereon; the 2009 Annual Report dated May 2010, and all prior Disclosure Statements and Reports since September 2000; and copies of all semi-annual and quarterly reports and press releases since September 2000; may be found at the Corporate/Investor section of the Retail Holdings' website: www.retailholdings.com.

SOURCE Retail Holdings N.V.