Sodexo inches up after subsidiary Sofinsod sale
** Shares in Sodexo EXHO.PA inch up 2% after the French food caterer finalised sale of subsidiary Sofinsod to Bellon for 918 million euros ($994.65 million), in a move to further simplify its structure
** Sodexo will distribute the sale proceeds to its shareholders through an interim dividend of EUR 6.24 per share
** RBC points out the sale price is ahead of its own valuation of the asset at EUR 801 million
** "This simplifies the ownership structure... allows (Sodexo) to make a special one-time cash distribution equivalent... and has the potential to lower volatility in the stock price," RBC says
** J.P.Morgan says the "long-awaited" news should be supportive to the shares, though it would prefer Sodexo to run a share buy-back instead of a dividend, but acknowledges the decision to be partly driven by the general complexity of the former
($1 = 0.9229 euros)
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