DIA shares rise as sale of Argentina unit sharpens focus on Spain

By Reuters News

** Shares in DIA DIDA.MC are about 6% after the Spanish supermarket chain sold its Argentinian business to local retailer Dorinka for $53.8 million to focus on its home market

** "Although the agreed price is certainly disappointing, its impact on the valuation is not material, and we believe the sale is clearly positive," Renta4 broker says

** Renta4 adds that, by divesting an unprofitable business such as the one in Argentina, DIA's figures improve considerably in terms of like-for-like growth, operating margin and return to capital

** It also notes that political and economic uncertainty in Argentina was weighing on recovery prospects and could draw investment away from Spain in the medium term

** Proceeds from the sale will support DIA's strategic plan and debt refinancing, broker adds

** If gains hold, shares will see their best day since June

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