Source: Sharecast
The retailer agreed to sell its high street shops to investment firm Modella Capital in March, as it looks to refocus solely on its online and travel offerings.
But announcing the sale’s completion on Monday, WH Smith confirmed it would now receive less than it had originally agreed, after Modella reopened negotiations.
It noted: "Following the agreement and announcement of the sale, the future of the high street business under a change of ownership has led to a more cautious outlook among stakeholders.
"This, combined with a period of softer trading, has resulted in a reduction in the ongoing cashflow of the business.
"Consequently, Modella has recently sought amendments to the construct of the transaction."
As a result, WH Smith will now receive gross cash proceeds of up to £40m for its 480 stores, which are spread across high streets, shopping centres and retail parks, compared to the £52m it had initially expected.
Of that, £10m is expected in the current financial year and up to £20m in 2026. Another £10m of deferred tax assets will be delivered as it becomes payable.
As at 0830 BST, the FTSE 250 stock had lost 8% at 1,039.78p.
However, looking to the rest of the group, and WH Smith said that its travel divisions - which are about to enter the peak summer period - continued to trade in line with market expectations.
WH Smith has around 1,200 stores in airports and train stations in 32 countries, as well as online card and gift brand funkypigeon.com.
Modella, which also owns HobbyCraft in the UK, plans to rename WH Smith TG Jones, meaning the brand will disappear from the high street after 233 years.
Following the transaction, WH Smith said it expected headline net debt as at 31 August to stand at £425m.