The retailer behind IGA supermarkets is considering spinning off its automotive businesses and listing them on the share market.
Metcash's automotive division, which includes the Autobarn, Autopro and Midas brands, generated revenues of about $250 million in the year to the end of April.
The retailer says it is carrying out a strategic review of the division and investigating whether to launch an initial public offering.
"An IPO of the automotive business would create a separate ASX listing and allow Metcash to invest the proceeds in both its balance sheet and its core businesses," Metcash said in a statement.
Metcash said it would update investors when it reports its annual results on June 15.
The company warned in December that its full year underlying earnings could fall by up to 22 per cent.
Metcash has been struggling against competition from foreign rivals Aldi and Costco.
Its shares closed two cents lower at $1.285.
Share
