Metcash shares crash after downgrade

 In Australia, Metcash/IGA, NewZealand
Metcash shares fell as much as 12 per cent after the wholesaler said it would reduce its dividend payout to fund almost $700 million of capital investment over the next five years.
Metcash is embarking on a five-year transformation plan aimed at securing the future of the wholesaler and its independent retailers in the face of increased competition from Coles and Woolworths in food and groceries and Bunnings and Masters in the hardware space.
The shares fell 9.7 per cent to $2.85 at 11.32 am AEDT after earlier posting its biggest fall since February 2005 of 12.4 per cent to the lowest level in almost a decade of $2.76. The shares have dropped 32 per cent over the last 12 months.  Sydney Morning Herald – Read more…

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