AB Foods to demerge Primark after review

(Sharecast News) - Associated British Foods on Tuesday said it planned to demerge its Primark retail business from its food operations after a review. The Weston family's Wittington Investments, AB Foods' largest shareholder, said it would retain majority ownership of both entities.

AB Foods shareholders will hold shares in both companies. Primark, which provides more than half of the conglomerate's profit, has 486 stores globally.

The foods business includes the Ovaltine, Patak's, Blue Dragon Ryvita and Twinings brands, along with a major sugar division and agriculture operations.

The news came as AB Foods posted a 19% fall in adjusted pre-tax profits to £663m for the six months to February 28 and held its outlook for the full year.

Reporting by Frank Prenesti for Sharecast.com

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