Fnac Darty Sells British Comet Pension Fund
Fnac Darty announces the complete sale of the Comet pension fund in the UK for 330 million pounds, according to the company.
Comprehensive Agreement Reached
Fnac Darty has reached an agreement with the Trustee of the Comet pension fund in the UK and Canada Life UK to cover the liabilities of the plan through a full buy-in of 330 million pounds. The purpose of this transaction is to transfer the financial risk associated with future payments to a leading insurer, thereby ensuring long-term benefits for the plan's beneficiaries, the company states.
Significant Risk Reduction Step
According to Fnac Darty's press release, this transaction represents a major step in risk reduction for the group, improving visibility on future costs and strengthening the company’s long-term liquidity position. The agreement does not have a significant impact on the group's cash flow. The benefits for the plan's beneficiaries will remain unchanged under this agreement.
Background of the Comet Pension Fund
The Comet pension fund, associated with Darty in the UK, was consolidated into Fnac Darty's portfolio following the acquisition of Darty in 2016. Jean-Brieuc Le-Tinier, Chief Financial Officer of Fnac Darty, highlighted that this agreement was made under 'favorable market conditions'. Fnac Darty was advised by LCP for this transaction, while Macfarlanes provided legal counsel.
