By Alberto Delclaux

Ceconomy AG (CEC.XE) said Tuesday that it is considering a capital increase of up to 10% related to the potential transfer of its Russian MediaMarkt business, confirming press reports that led to the share price tumbling.

The German retailer said it is considering a capital increase in light of the potential transfer, and to strengthen its balance sheet for further strategic measures. A final decision on the increase will be taken at a later date, it said.

Ceconomy said its talks with Russia's Safmar Group to transfer its entire loss-making Russian MediaMarkt business could come to a conclusion shortly.

At 1042 GMT, Ceconomy shares trade 9.5% lower at EUR7.83.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

June 19, 2018 07:09 ET (11:09 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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