Office Depot (NYSE:ODP) Sells Japanese Delivery Business

Office Depot (NYSE:ODP) has reportedly sold its Japanese Delivery business, as most expected to happen.

FBR commented, "Media reports indicate that Office Depot (ODP/Outperform) has sold its Japan Delivery business for an undisclosed sum. ODP exited its Japan retail business in 2009, while management hinted to the likely sale of its Japan Delivery segment last quarter, reported 10/27/10. Today's reports are as expected. It is a subtle positive that ODP has been monetizing certain assets, namely its Israel segment, discussed last quarter (for $47M) and this segment today (which we expect garnered an immaterial amount of proceeds - less than Israel).

"The International segment alone had a book total asset value (no goodwill) of $1.493B as of 2009 (which includes ODP's 50% of the net assets of Mexico, or 50% of $390M); this compares with the current market capitalization of the stock price of $1.3B, while we point out that enterprise valuations within the group normally trade at levels that are north of book value. We reiterate our Outperform rating on ODP, with a high risk, high reward investment thesis. The stock trades at 0.16x EV/sales, compared with the group average of 0.86x."

FBR maintains their "Outperform" rating on Office Depot, which was trading at $4.78, up $0.07, or 1.49 percent, as of 12:14 PM EST.