John Lewis moves Ocado stake

Tuesday, 11 November 2008
 
The John Lewis Group has transferred its 29% stake in home delivery company Ocado to its pension fund.

John Lewis said it can now concentrate on expanding the online programmes being undertaken at its grocery chain Waitrose.

John Lewis chairman Charlie Mayfield said: "We believe that now is the right time for us to simplify and clarify our relationship with Ocado.

"The structure of the transaction ... is an effective way of achieving that while still allowing our partners to benefit from any future increase in Ocado's value."

Now the Waitrose home delivery service will be able to compete directly with Ocado, while the latter company can sell its services to other retailers.

Ocado has been valued at £448m, while the 29% John Lewis stake is worth £128m.

Last Friday, John Lewis said revenue at Waitrose grew by 0.5% in the week until 1 November.

Yesterday, TalkingRetail.com published exclusive pictures of the company's new first Middle East store in Dubai.
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