DFI Retail Group (DFIRG USD) saw its stock price surge by 3.56% in intraday trading on Monday, following the announcement of a significant business restructuring. The company revealed plans to divest its Singapore food business to South-east Asian retail conglomerate Macrovalue (Malaysia) for S$125 million, subject to adjustments.

The deal includes the sale of 48 Cold Storage stores (under the Cold Storage, CS Fresh, and Jason's Deli brands), 41 Giant stores, and two distribution centers. This strategic move is expected to be completed in the second half of 2025, marking a significant shift in DFI's Singapore operations. The divestment allows DFI to streamline its focus on its Guardian and 7-Eleven businesses in Singapore, which the company believes hold substantial growth potential.

Scott Price, group chief executive of DFI Retail Group, emphasized the importance of leveraging scale and operational efficiencies in the current environment of rising food costs and inflation. The company expects this transaction to result in an enhanced product range and more competitive pricing for Singapore customers. Following this restructuring, DFI anticipates its underlying profit for 2025 to be between US$230 million and US$270 million, supported by an organic revenue growth of about 2 percent. Investors appear to be reacting positively to this strategic realignment, as reflected in the stock's significant price increase.