Rona says looking to sell non-core assets

Thu Dec 6, 2012 7:14am EST
 
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(Reuters) - Canadian home-improvement retailer Rona Inc RON.TO, the target of a C$1.8 billion takeover proposal by U.S.-based Lowe's Cos Inc LOW.N earlier this year, said it expects to dispose of non-core assets and redeploy capital to leverage core assets.

The company wants to improve its retail EBITDA (earnings before interest, tax, depreciation and amortization) margin in line with industry standards under the leadership of acting Chief Executive Dominique Boies, who joined Rona in 2011, the company said in a statement.

Lowe's withdrew its unsolicited offer buy Montreal-based Rona in mid-September in the face of stiff opposition from Quebec province politicians and many of the company's independent dealers.

Rona's longtime chief executive, Robert Dutton, stepped down last month following disappointing results, prompting speculation that the company could be back in play.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Ted Kerr)