Reports that GUS may demerge Experian to focus on its retail operations such as Argos and Homebase, have been circulating for around 18 months.
However, according to a report in The Sunday Telegraph, the group's management, led by chief executive John Peace, are "getting things in motion for a separation" and "accept the logic of a demerger".
The management team are said to be waiting for the green light on whether the enlarged Argos Retail Group can operate as a standalone business before going ahead. Argos Retail Group also includes the Homebase DIY stores and Argos catalogue-based shops. The demerger is being forecasted towards the end of the year.
It is unclear whether Experian would be sold off completely or some of the company floated on the stock market. It could be valued at around 拢4bn.
A spokesperson for GUS declined to comment as DM Bulletin went to press. The company's preliminary results are expected today. In the year ended March 2003, GUS has sales of 拢7.1bn and profits of 拢642m before tax. Argos Retail accounts for 44% of the group's profits before tax, Experian 33% and Burberry 15%.
Although Experian is been doing exceptionally well for the company, it is seen as a very distinct business from the retail division. The company sells credit information to individuals and companies in more than 60 countries.
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